Apple is finally bringing Apple Pay Later to its customers, letting them make payments for purchases in installments. The service is launching for U.S. residents today, sending out invites to select users before rolling it out widely. The company initially announced Apple Pay Later in September 2022, when it intended to launch it with iOS 16. However, due to technical issues, the launch was delayed.
With Apple Pay Later, customers can pay four installments spread over six weeks when making purchases, that too, without any interest or extra fees. They can also track and manage their transactions and Apple Pay Later loans from the Apple Wallet app. These loans can be worth $50 to $1,000 and can be used to make online or in-app purchases on iPad and iPhone merchants that support Apple Pay. Additionally, as Apple Pay Later is enabled using the Mastercard Installments program, these merchants are not required to do anything to implement Pay Later for their customers. Also, Goldman Sachs issues Mastercard payment credentials that are needed to make purchases using the new service.
The company added that it will invite select certain individuals to try out a “prerelease version” of the Apple Pay Later facility from today, however, it plans to make it available for more people in the future. Apple’s vice president of Apple Pay and Apple Wallet, Jennifer Bailey, explained the new service :
“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.”
Apple users who want to avail of the Apple Pay Later service can apply for loans from the Apple Wallet app. While Apple mentions this will be done with “no impact” on the users’ credit, it does mention that their payment history might be shared with credit bureaus. Next, they must enter the amount of the loan they wish to get and agree to the terms of service. Lastly, a credit pull will be conducted to check the debtor’s financial position and ensure the loan can be repaid. Upon approval, customers will be given a Pay Later option in Apple Pay when they make purchases from their Apple devices. Furthermore, the company adds that once a user has set up Apple Pay Later, they can simply get a loan in the checkout flow when they make a purchase.
The company blog post also highlights:
“Apple Pay Later is built right into Wallet, so users can seamlessly view, track, and manage all of their loans in one place. With Apple Pay Later in Wallet, users can easily see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days. They can also choose to see all upcoming payments on a calendar view in Wallet to help them track and plan their payments. Before a payment is due, users will also receive notifications via Wallet and email so they can plan accordingly. Users will be asked to link a debit card from Wallet as their loan repayment method; to help prevent users from taking on more debt to pay back loans, credit cards will not be accepted.”
To further its users’ trust, Apple claims that the service prioritizes user privacy and security. Any purchases made through Apple Pay Later are authenticated with the help of Face ID, passcodes, and Touch ID, and their transactions are not disclosed to third parties, although, Apple plans to share information about Apple Pay Later loans with the U.S. credit bureaus from fall 2023.