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I don't think applies to the Pay Later. But when you look at the Apple credit card, you can finance a, lets say, Macbook Pro for 12 months interest fee with mon

I don't think applies to the Pay Later. But when you look at the Apple credit card, you can finance a, lets say, Macbook Pro for 12 months interest fee with monthly payments that, if made on time, will pay off the device in 12 months. Couple that with Apple high yield savings. If you have the cash to pay for the device, why not chuck the cash into Apple's high yield savings, earn 4.4% APY and just make the interest free monthly payments?

lxgr 2y ago
If there's an even longer term interest-free loan, of course I'll usually take it! BNPLs are decidedly not that, though – see here for some back-of-napkin math: https://news.ycombinator.com/item?id=40711149 https://news.ycombinator.com/item?id=40711149
- tcmart14 2y ago
  For sure, the BNLP is no where near as good at the credit card deal. In the apple specific case with the apple card, you'd be leaving the 3% cash back on the table where as the links shows, you won't get that with the BNLP. Which for a $2,000 MBP with 3$ cash back, you'd get $60 on the cash back making the device effectively $60 bucks cheaper. And a little more cheaper if you put the cash in the HYSA. My guess to answer the question at the bottom of your comment you linked. Its a mix. For some, its a lack of financial literacy. For others, its not being bothered with other options and taking the first option thrown in their face (even unaware that better option exists). Which in Apple's case, seems like a perfect way to push their credit card, and can use that to push it harder. Why even bother with BNLP when there is a better option. I also imagine Apple benefits more from the credit card than they do their partnerships with Affirm. But that would just purely be a guess.
  - lxgr 2y ago
    Apple’s financing option for their hardware, at least the one in the US based on the Apple Card, does pay the 3% cashback. You even get the full cashback amount after making just the down payment, which I found quite nice. I’m not even sure if you can use Apple Pay Later for most Apple hardware, since the maximum loan amount seems to be $1000.

lxgr 2y ago

If there's an even longer term interest-free loan, of course I'll usually take it! BNPLs are decidedly not that, though – see here for some back-of-napkin math: https://news.ycombinator.com/item?id=40711149 https://news.ycombinator.com/item?id=40711149

tcmart14 2y ago
For sure, the BNLP is no where near as good at the credit card deal. In the apple specific case with the apple card, you'd be leaving the 3% cash back on the table where as the links shows, you won't get that with the BNLP. Which for a $2,000 MBP with 3$ cash back, you'd get $60 on the cash back making the device effectively $60 bucks cheaper. And a little more cheaper if you put the cash in the HYSA. My guess to answer the question at the bottom of your comment you linked. Its a mix. For some, its a lack of financial literacy. For others, its not being bothered with other options and taking the first option thrown in their face (even unaware that better option exists). Which in Apple's case, seems like a perfect way to push their credit card, and can use that to push it harder. Why even bother with BNLP when there is a better option. I also imagine Apple benefits more from the credit card than they do their partnerships with Affirm. But that would just purely be a guess.
- lxgr 2y ago
  Apple’s financing option for their hardware, at least the one in the US based on the Apple Card, does pay the 3% cashback. You even get the full cashback amount after making just the down payment, which I found quite nice. I’m not even sure if you can use Apple Pay Later for most Apple hardware, since the maximum loan amount seems to be $1000.