Payletter: Why does Apple want to lend you its products?

 Payletter: Why does Apple want to lend you its products?

Apple has introduced a service called 'Apple PayLetter' by joining the 'Buy Now Payletter' (ie buy now, pay later) business.

 The launch of the service was announced earlier this week at Apple's "World Wide Developers Conference 2022" and will be launched in the US early this year.

 PayPal will be integrated into the Apple Wallet app and can be used for any purchase made through Apple Pay. Customers will be able to split the purchase amount into four equal payments (ie four installments) and pay the full amount over a period of four months without interest or commission.

 However, Apple will first check the soft credit of users who want to use the service (ie credit history will be checked).

 Technology experts believe that Apple has designed this feature keeping in mind the 'financial health' of consumers. Apple is potentially trying to consolidate its position in the world of consumer finance and increase its profits.

 However, users need to be aware of the dangers of using this new service.

 Apple's favorite brand of consumers

 With PayPalter's service, Apple will now be able to compete with other financial technology companies in the sector. This includes PayPal, Blockchain, Clarna and AfterPay. Shares of some of these companies have plummeted since Apple's announcement.

 This will allow Apple to leverage the power of its large market and brand and its ability to attract millions of people to its products and services.

 This could enable Apple to attract customers who like it a lot. There is no doubt that this company is one of the favorite brands of consumers.

Apple has also set up a growing ecosystem where consumers are encouraged to access Apple products and services. For example, the feature of paying through your iPhone instead of a bank card.

 The big tech company has already stepped into the world of smartphones and smart watches and its products focus on consumer experience. The payroll feature can further enhance the user experience. This is a way for users to integrate all the tools they need into a single ecosystem.

 What's in it for Apple?

 The company can reap huge financial benefits through Apple PayPal. IPhone payments are accepted by 85% of retailers in the United States.

 A 2021 survey found that around 26% of online shoppers in Australia use the Buy Now PayPal service.

 As Apple's customers are increasingly using the payroll service, the company will benefit from merchant fees. These fees are paid by retailers to Apple so that they can provide Apple Pay service to customers.

 The company will also get valuable feedback on consumers' purchasing thinking so that they can gauge their future preferences and costs.

Apple has partnered with Goldman Sachs to offer a payroll service. The company will finance the loans. This relationship has been established since 2019. Goldman Sachs has acted as a partner for Apple's credit card (although PayPal is not attached to this card).

 It is a strategic partnership that has helped Apple make a strong start in the world of consumer finance.