Apple launches Apple Pay Later to allow consumers to pay for purchases over time

Apple today introduced Apple Pay Later in the U.S. Designed with users’ financial health in mind, Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees.

Apple Pay Later allows users to split the cost of an Apple Pay purchase into four equal payments spread over six weeks.
Apple Pay Later allows users to split the cost of an Apple Pay purchase into four equal payments spread over six weeks.

Users can easily track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet. Users can 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.3 Starting today, 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.

“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,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “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.”

Apply for, Track, and Manage Loans Seamlessly in Wallet

To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit.4 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.

After 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. Once 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 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.

Apple Pay Later was designed with privacy and security at its core. 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, a subsidiary of Apple Inc., which is responsible for credit assessment and lending. Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall,5 so they are reflected in users’ overall financial profiles and can help promote responsible lending for both the lender and the borrower.

Mastercard and Goldman Sachs

Apple Pay Later is enabled through the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers. When 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.

MacDailyNews Note: Starting today, March 28th, 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. 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.

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  1. Advocating debt…so nice, so creative, so culturally beneficial. What a company to be thinking of the people.

    Our country is in decline and debt, spending and mismanagement of the currency is a major factor. To have the largest co in the US to embrace and enable more debt is truly sad and despicable. Apple is setting and welcoming people into a trap…for sales of items of convenience (mostly).

    1. It’s so reassuring to know that people like Frank exist. He’s so smart, he funded his own college education without any loans. He bought his first car and his house with cash. He never ever uses a credit card. Because using financial tools of the dark ages is definitely the cool thing to do.

      Back in the real world, the wise use of financial tools allows the non-billionaire classes timing options for their purchases. Lending isn’t evil. Usury is, and should be regulated completely out of existence. But you’d have to support regulation to make that happen.

      This news from Apple proves that it has so much cash it doesn’t know what to do with it, and the leaders at Apple are directed to maximize profits any way possible rather than keep focusing on user experience and quality. Making stuff reliable and easy to use just doesn’t look good to an accountant. So Apple acting like a credit agency seems like a lame move but then again, if Timbo puts payday lenders and black market kingpins out of business, the world would benefit.

  2. Question: Walmart is the world’s largest company by revenue, largest private employer in the world with 2.2 million employees and world’s largest general store. They do not accept Apple Pay, instead a proprietary NFC method Walmart Pay. However, they do accept the physical Apple Credit card. Does this qualify, or any other merchant for that matter, using a physical Apple credit card for the terms of “Pay Later”?

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