Apple Launches Apple Pay Later Service in US

Apple has introduced Buy Now Pay Later service, named Apple Pay Later, in the United States. Starting Tuesday, randomly selected users will be invited to get early access to a prerelease version of Apple Pay Later via Wallet and through their Apple ID email. Designed with the user’s financial help in mind, Apple Pay Later allows users to take small loans that can be used and managed within Apple Wallet.

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Apple Pay Later Service

With Apple Pay Later, Apple users can split their purchases into four payments, spread over six weeks, without incurring any fees or interest charges. In addition, users can conveniently track, manage, and repay their Apple Pay Later loans in one location on their Apple Wallet. Small loans ranging from USD 50 to USD 1,000 can be applied for and used for online and in-app purchases made on iPhone and iPad, as long as the merchants accept Apple Pay.

Apply for Loan within Wallet

Apply Pay Later users can apply for a small loan within their Wallet without impacting their credit scores. However, according to the statement, a soft credit pull will be done during the application process to ensure the user is in a good financial position. Once the loan is approved, the user will see the Pay Later Option on selecting Apple Pay at checkout online and in apps.

Calendar View

Apple users can also choose to view all upcoming payments on a calendar view in their Wallet to help track and plan payments.

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Credit Cards Not Accepted

Credit cards will not be accepted to prevent users from accumulating more debt to repay their loans. Instead, users will be requested to link a debit card from their Wallet to serve as their loan repayment method.

As Always, Privacy at Core

Transactions made using Apple Pay Later can be authenticated using either Face ID, Touch ID, or passcode. Furthermore, users’ loan and transaction history are confidential and will not be shared or sold to third parties for marketing or advertising purposes.

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Service Offered by Apple Financing

Apple Pay Later is offered by Apple Financing, a subsidiary of Apple. Apple Financing plans to report the small loans availed by the Apple Pay Later service to US credit bureaus starting fall to promote responsible lending and borrowing. Goldman Sachs issues the Mastercard payment credential utilized to make purchases with Apple Pay Later.

Apple Pay Later is available with Apple iOS 16.4 and iPadOS 16.4.