Apple has introduced Apple Pay Later in the U.S. With users’ financial health in mind, Apple Pay Later allows consumers to split purchases into 4 payments, spread over 6 weeks with no interest and no fees.
Consumers are able to easily track, manage, and repay their Apple Pay Later loans in one convenient location within the Apple Wallet app.
Specifically, consumers are able to apply for Apple Pay Later loans of $50 to $1,000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay. And starting now, Apple will begin inviting select users to access a prerelease version of Apple Pay Later, with plans to offer it to all eligible users in the coming months.
To get started with Apple Pay Later, users are to apply for a loan within Wallet with no impact on their credit. And they will then be prompted to enter the amount they would like to borrow and agree to the Apple Pay Later terms. A soft credit pull will be done during the application process to help ensure the user is in a good financial position before taking on the loan.
Once a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase. After Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase.
Apple Pay Later is connected right to the Wallet app so users are able to view, track, and manage all of their loans in one place. And with Apple Pay Later in Wallet, users can easily see the total amount due for all of their existing loans along with the total amount due in the next 30 days.
Plus the consumers can also choose to see all upcoming payments on a calendar view in Wallet to help them track and plan their payments. And before payment is due, users will also receive notifications via Wallet and email so they can plan accordingly.
Users can be asked to link a debit card from Wallet as their loan repayment method and to help prevent users from taking on more debt to pay back loans, credit cards will not be accepted.
Apple Pay Later was designed with privacy and security at its core. And the purchases using Apple Pay Later are authenticated using Face ID, Touch ID, or passcode, and users’ transaction and loan history are never shared or sold to third parties for marketing or advertising.
Apple Pay Later is offered by Apple Financing LLC, which is a subsidiary of Apple Inc., which is responsible for credit assessment and lending. And Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall so they are reflected in users’ overall financial profiles and can help promote responsible lending for both the lender and the borrower.
Apple Pay Later can be enabled through the Mastercard Installments program so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for customers. And after a merchant accepts Apple Pay, Apple Pay Later will be an option for their customers during checkout online and in apps on iPhone and iPad.
Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.
Availability
Starting now, randomly selected users will be invited to get early access to a prerelease version of Apple Pay Later through the Wallet app and through their Apple ID email. And Apple Pay Later is available in the U.S. for online and in-app purchases on iPhone and iPad. Apple Pay Later is available with iOS 16.4 and iPadOS 16.4.
KEY QUOTE:
“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 Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”
— Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet
