Apple has expanded the availability of its “Apple Pay Later” feature to all users in the United States. Initially introduced to a select group in March, this feature was first announced in June 2022 during Apple’s Worldwide Developers Conference (WWDC).
What is Apple Pay Later?
Apple Pay Later is a payment option that allows users to divide the cost of an Apple Pay purchase into four equal installments over a span of six weeks. Notably, this service comes without any interest or late fees. The tech giant’s official website highlights that Apple Pay Later can be utilized for transactions ranging from $75 to $1,000 on both iPhone and iPad devices.
How Does It Work?
Apple Pay Later is a loan service that users can apply for through the Wallet app on their device. Once approved, users will be able to select the “Pay Later” option at checkout when using Apple Pay online or in apps on iPhone or iPad.
Before finalizing a purchase using this feature, users will be presented with a breakdown of their four upcoming payments. This will be displayed alongside any other pending Apple Pay Later payments. Users have the flexibility to opt for automatic payments or choose to pay manually. To ensure timely payments, Apple will send alerts and reminders as the due dates approach. All payment details can be conveniently accessed within the Wallet app.
Additional Information Apple’s website cautions users that their respective banks might impose fees if their debit card account lacks the necessary funds for loan repayments.
Eligibility criteria for Apple Pay Later include being a minimum of 18 years old, holding US citizenship or being a lawful resident with a valid US address. Additionally, users must have Apple Pay set up with a qualifying debit card on their device. In some cases, Apple may request users to verify their identity using a driver’s license or a state-issued photo ID.
Apple Financing is a service that assesses creditworthiness and provides loans through Apple Pay Later, which is powered by the Mastercard Installments program issued by Goldman Sachs and handles all transactions made with Apple Pay Later.
Competition in the Market With this broader rollout, Apple Pay Later is set to compete directly with other “buy now, pay later” (BNPL) services offered by companies like PayPal, Affirm, Klarna, and many more.
After some anticipation and delays, Apple’s Pay Later feature is finally available to a wider audience, marking the tech giant’s foray into the competitive BNPL market.