At this rate money is fake, nothing is real, and sooner or later we are going to be putting our kids diapers on an interest free payment plan. Yesterday, Apple announced a “buy now, pay later” financial service powered by MasterCard. This is another step in their transition from a hardware company to a full-blown tech services company. Apple implementing this paves the path for the “Buy Now, Pay Later” shopping practice becoming more mainstream.
For us, we find it easy to see why Apple is doing this. They are positioning themselves into another market against the competitors that can be seen linked here. Ever look how much cash Apple has? Just cash, billions on hand, and since they partnered with Goldman Sachs they are basically a tech-bank so they have no problem issuing credit alongside the top professionals in the finance industry. We are now seeing the expansion of Apple’s financial services after launching their Apple Credit Card in 2019.
Oof. Apple announces Buy Now Pay Later function.
— Mark Di Stefano (@MarkDiStef) June 6, 2022
Affirm, Klarna, Afterpay just got stabbed in the front. pic.twitter.com/B3yQsXCaf7
Here is my issue: everyone should get by now that financial slavery is typically profitable for banks, for loan sharks, for whomever is giving out money, as they hope to earn interest in any way, shape, or form, while “serving their customers.” As stated, the tech industry is just dipping their toes in financial services and it can be foreseen that they have more tricks up their sleeve. At the same time, this can be seen as a method to not only boost sales on their own products, but if Apple builds enough steam with their current customer base (basically any iPhone user) they can really shake the way people shop. This is simply another affordable method of credit for customers who may not have a credit card, and get to do so with little to no hard credit inquiry.
Let’s talk about the acceleration of a problem that a lot of people have, which is spending money they don’t have, or before they have made it. Kind of dancing with the shopping devil. This might be a rich fathers nightmare.
Do not get me wrong the “pay in four interest free installments” is great. I have used it with PayPal with 0% interest (very key here) and if you pay on time it provided me some extra cash on hand especially during a time I was moving. This gave me a chance to collect a couple paychecks while paying for some other things I needed for the move. Here is the thing, I used it ONCE while some will probably abuse this until Apple makes them stop or does not approve them any longer. We know it is human nature for people to abuse things like this and push their problems later into the future.
Again, great if you can manage yourself, not so great if you’re financially illiterate, but we know people are going to over extend themselves per usual and end up slaving in yet another financial situation. That new iMac or Gucci belt is going to look way more affordable in people’s eyes over six payments or two years, depending on whatever you decide.
Just remember: protect your own pocket. These big businesses just see you as a potential data point for future profit. Only you can save yourself. Make smart financial choices!
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