The recently Apple Pay Later has hit a snag in the UK with the government announcing plans to clamp down on the “buy now, pay later” (BNPL) market reports BBC News.
Apple Pay Later was announced at the 2022 Worldwide Developer Conference and provides users in the US with a way to split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with zero interest and no fees. Users can track, and repay Apple Pay Later payments within Wallet.
Users can apply for Apple Pay Later when they’re checking out with Apple Pay, or in Wallet. Additionally, with Apple Pay Order Tracking, users can receive detailed receipts and order tracking information in Wallet for Apple Pay purchases with participating merchants.
However, under plans set out by the UK government:
- Lenders will be required to carry out checks to ensure that loans are affordable for consumers,
- Advertisements must be fair, clear and not misleading.
- Lenders will need to be approved by the Financial Conduct Authority (FCA).
- Borrowers will be be able to take complaints about BNPL schemes to the Financial Ombudsman Service.
