Apple Pay Later – Everything you need to know

Apple has made an announcement stating that the much-anticipated financing service, Apple Pay Later, will start its rollout from today. During its launch, Apple will invite certain users to access a pre-release version of Apple Pay Later.

Subsequently, in the United States, it will become available to all eligible users in the coming months.

What is Apple Pay Later?

Apple has introduced a novel financial service, called Apple Pay Later, which allows US customers to split purchases into four equal payments over a period of six weeks, without any additional fees or interest.

This feature can be accessed wherever Apple Pay is accepted, online or in-app. Although Apple Pay Later was first unveiled at WWDC 2022, it has only begun rolling out recently.

According to Jennifer Bailey, the Vice President of Apple Pay and Apple Wallet, the service is designed to provide users with flexible payment options, and has been created keeping users’ financial well-being in mind.

Bailey emphasizes that Apple Pay Later aims to cater to individual needs, since people manage their finances differently.

The absence of fees and interest, along with the service being available and manageable within the Wallet, ensures that consumers can make informed and responsible borrowing decisions.

How does Apple Pay Later work?

To apply for a loan using Apple Pay Later, the user needs to initiate the process within the Wallet app on their iPhone. According to Apple, this application will not affect their credit score, but their loan and payment history may be reported to credit bureaus and subsequently impact their credit standing.

The loan amount can range from $50 to $1,000. Before approval, a soft credit inquiry is conducted to ensure that the user is financially stable enough to take on the loan.

Once approved, the loan can be utilized for online and in-app purchases made through Apple Pay merchants. Upon setting up Apple Pay Later for the first time, users can also apply for a loan directly during the Apple Pay checkout process. Merchants do not need to take any additional action to provide their customers with the option of Apple Pay Later.

Apple Pay Later is available as a feature through the Mastercard Installments program. Additionally, users can manage their loan repayments through the Wallet app, which displays the total amount due for all existing loans and the total amount due in the next 30 days.

Users will receive notifications through both the Wallet app and email prior to the due date of their payments, enabling them to make appropriate arrangements. To repay loans, users will be prompted to link a debit card from their Wallet, as credit cards will not be accepted to prevent users from accumulating more debt.

To determine whether you are among the initial set of users who can access Apple Pay Later, simply check the Wallet app on your iPhone.