After much delay, Apple has introduced “Apple Pay Later,” a buy now pay later service, but only for select customers in the US. First announced at the WWDC last year, Apple Pay Later lets users split the cost of an Apple Pay purchase into four equal payments over six weeks, and there is no interest or late fees.
The Pay Later option can be found inside the Apple Pay app on iPhones or iPads, and users can track, manage and repay their loans. Users can apply for a pay-later loan of $50 to $1000, which can be used to transact with supported merchants. Although one needs an invite to do so, which is sent out on a random basis. Apple plans to offer pay-later services to all eligible users in the coming months.
Apple says that the pay later loan will have no impact on their credit. But once the service rolls out for all the Pay Later loans, payment history may be reported to credit features and can also impact their credit. If you get an invite, you can use Apple Pay Later for online and in-app purchases on your iPhone and iPad, running iOS 16.4 and iPadOS 16.4.
“There’s no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later,” Apple VP of Apple Pay and Wallet Jennifer Bailey said in the press release.
Apple Pay Later purchases will be authenticated using Face ID, Touch ID or passcode. According to Apple, users’ transactions and loan history is not shared or sold to third parties.
In 2019, Apple introduced its first credit service – Apple Card – a credit card for Apple users. The card is built into the Wallet app on iPhone, entitles a physical metal card to users, and offers 3% cashback on transactions with 24/7 support and easy-to-view spending.