Depends, if the company doesn't get anything or sales don't increase then it's dumb. But how most credit cards and banks do it, is by charging interest. The average person is impulsive. The whole point of the buy now pay later scheme is that it encourages people to buy more if you break it down to smaller payments over a period of time.
Actually it's great if you have excess stock and slowing demand. People with less money will join in to buying expensive products, which they otherwise would have avoided. Increase demand.
@@Hhhh22222-w This loan system sounds promising for borrowers, but its effectiveness in places like the USA won't work Trust and a strong sense of community might be crucial for such a system to thrive. Religious beliefs promoting responsible borrowing could also play a positive role. While high interest rates on credit cards and BNPL (Buy Now, Pay Later) systems can be a burden, they partially reflect the risk associated with the borrower's credit history. People with a proven track record of repaying debts can qualify for lower rates. There will inevitably be borrowers who default or struggle to repay their loans in full. Interest serves a dual purpose: covering potential losses and generating profit for the lender. The success of this loan system likely hinges on a combination of cultural trust, responsible borrowing practices, and a way to manage potential defaults. It would be interesting to see how it could be adapted to different social and economic contexts.
Excuses excuses, it wasn’t a regulation change. Apple would’ve never had an issue with that. There’s lots of other companies out there that do the same thing so excuses excuses old man you’re a little out of touch with time.
I think it’s the opposite. Apples customers are mostly low income therefore they used the service too much and scared apple. This was a huge wake up call for them.
It’s possible people just weren’t using the program. Almost everything I’d want to finance in the last year cost more than $1000, so the program wasn’t usable. If they had extended it to $1500 or $2000, I probably would have used it.
@@salocin9009 Certainly in the UK, you do online purchases with Apple Pay with Touch ID/Face ID, and Google Pay with Face Unlock/Touch Unlock/Windows Hello. Just about everyone who isn’t Amazon supports it.
Yeaaaah… no. Sorry man, you usually have great takes but this one is… lets call it uninformed. This pay later program was for 3rd party purchases and has nothing to do with the apple financing which is called Monthly Installments, and has been around since the Apple Card was released. You can still pay for an iPhone for 24 months, you just can’t do installments for that TV you buy at Best Buy any more via the Apple Card.
I don't think there's any real reason to pay apple back your debt because companies like Clara and I'm assuming apple pay later don't report debt to effect your credit score
It’s annoying how these guys try to lecture us on finances. Just talk about the topic I’m not here to listen to you tell me how you recommend I use a credit card or pay in 4
Former finance pro here. Apple should never have even got into Apple Card. The way the sector is regulated is such that you basically can’t manage money in well regulated markets unless you have that as the only thing you do. That’s why the card never launched in the uk. Our consumer protections are way too strong against firms not having the right controls and failsafes in place.
But that would still be apples fault for promoting this spend now pay later mentality like a lot of other companies are doing. When are we going to start pointing the fingers at these companies instead of individuals that are sold lies.
@@heyitz_rj not lies since BNPL is legit, but definitely a predatory lending service. Personally I'm glad like you at least one company got burned and hope this crap goes away all together
I have a theory lol. I feel like this was just a way for apple to get more apple products into peoples hands. Can’t afford it? Don’t worry! Just buy it now! Much like a lot of companies are doing. This proves that companies do see the spending trends of consumers but instead of creating more demand by giving people DEALS and making the products cheaper, they instead just promote this spend now pay later mentality that has proven to not always work out. This is also why I’m a huge advocate for not buying the latest thing if it doesn’t fit your budget. Sorry to say this but, how did you have the budget for a new iPhone 15 for max but not your light bill that’s due? Or to go to the doctors? If you don’t have iPhone 15 pro max money, then don’t buy that iPhone. There is no shame in just buying last years model or even the iPhone 13 which is still just as good. Don’t listen to sales reps that say “oh but the new one is better” of course sales reps are going to say that, think for yourself. I’m my opinion, this is a problem apple and many companies have started so they need to be the ones to fix it. Stop telling people to just buy now. And stop telling people that they need the newest model when they don’t.
I like the monthly payment system with Apple Card with 0 interest on apple products. Allows me to pay off a product a few months where I can save and then pay off the entire thing at a later date.
It’s actually very handy for many people. I use it regularly with Amazon and cleared many purchases, and many of them before the due date. You just have to manage the payments.
@@davidlazarus67 this causes everyone to get in trouble. there are so many people who can never pay things back. we all know this so why does it still exist ?
For the same reason that Affirm (or credit cards in general) exist; because I can stomach a $30/month payment for 36 months way easier than a $1080 one time payment.
@GHOSTSTARSCREAM I will accept it’s not for everyone. I bought a MacBook Pro from Amazon with 5 payments. It meant I could have it now rather than 5 months time. I still had a large bank balance to cover emergencies, and regular payments and gave me additional incentives to maintain my usual frugal lifestyle. I only ever do it with interest free offers never with interest.
If this was made for people with a lot of money if you don’t get a 750 score up, you didn’t get approved for this most people that have Apple phones don’t have the best credit in the world so Apple this was just a worthless product
I never liked Apple Pay Later to begin with because it not only encourages people to spend more money than they have, but it also subtracted Apple’s focus on technology.
Now Apple knows how it feels when they did that to Goldman. I don't know when they launched it but if it was after the deals with Goldman and the terms they made Goldman take. They might have realized if they follow the footsteps of Goldman then they could end up losing millions of dollars as well. Apple might have realized the errors of their ways by trying to venture out of their lane by getting into things like financing.
Great video and I agree... Which I think they wanted pay later to be like subscriptions but hip and trendy... Also who is paying full price for any phone these days when their are all sorts of deals going on?
I never purchase something that I do not currently have enough money to pay for now, but I do use this kind of financing for big items (like college tuition, or when I built a PC several months ago) because my credit limit is only $1000. I never personally used Apple Pay so it's no loss to me personally, but it's unfortunate that a valuable tool like this is going away.
