On Tuesday, Apple launched Apple Pay Later, which allows Apple Pay users to split purchases into four interest-free payments paid over six weeks without an additional fee. Apple Pay Later promises to disrupt up the Buy Now Pay Later industry.
Apple is the latest to enter the growing micro-loan space and joins popular BNPL services such as Affirm, Afterpay, Klarna and PayPal’s “Pay in 4” option. Here’s how Apple Pay Later compares.
Apple Pay Later
• Interest rate: 0%
• Payback timeframe: 4 payments over 6 weeks
• Loan amount limit: $50 to $1,000
• Fees: $0Affirm
• Interest rate: 0% to 36%
• Payback timeframe: 1 to 48 months
• Loan amount limit: Up to $25,000
• Fees: No late fees. However, a late payment could negatively impact your ability to get a loan in the future and possibly hurt your credit score.Afterpay
• Interest rate: 0%
• Payback timeframe: 4 payments over 6 weeks
• Loan amount limit: Variable, but increases the more you use Afterpay. A long-term user will typically have access to more funds than a new user.
• Fees: Late fee of $8 or 25% of the transaction, which ever is lessKlarna
• Interest rate: 0% to 29.99%
• Payback timeframe: Up to 24 months
• Loan amount limit: Variable and is based on factors such as your payment history with Klarna and your outstanding balance.
• Fees: Up to $7PayPal’s “Pay in 4”
• Interest rate: 0%
• Payback timeframe: 4 payments over 6 weeks; first payment is due at time of purchase
• Loan amount limit: Between $30 and $1,500
• Fees: $0
MacDailyNews Note: You can use Apple Pay Later at participating online and in-app merchants that accept Apple Pay.
What you need
• Be 18 years of age or older.
• Be a U.S. citizen or a lawful resident with a valid, physical U.S. address that’s not a P.O. Box.
• Set up Apple Pay with an eligible debit card on your device. You can only make Apple Pay Later down payments using a debit card.
• Set up two-factor authentication for your Apple ID and update to the latest version of iOS or iPadOS.
• You might need to verify your identity with a Driver License or State-issued photo ID.
Set up in Apple Wallet
Add Apple Pay Later to your Apple Wallet to get started with your first application:
- On your iPhone, open the Wallet app. On your iPad, go to Settings and tap Wallet & Apple Pay.
- Tap Add the add button.
- Tap Set up Apple Pay Later, then tap Continue.
- Follow the onscreen instructions to apply for an Apple Pay Later loan. When you’re asked to input your requested amount, enter the total value of the purchase you plan to make using Apple Pay Later including estimated shipping and taxes.
- Tap Next, then verify your name, date of birth, and address.
- Review your personal information, then tap Agree & Apply.
- Review your payment plan information and loan agreement details, then tap Add to Wallet.
You can use your Available to Spend amount to make a purchase up to 30 days after you’re approved.
More info: https://support.apple.com/en-us/HT212967
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“On Tuesday, Apple launched Apple Pay Later, which allows Apple Pay users to split purchases into four interest-free payments paid over six weeks without an additional fee. Apple Pay Later promises to disrupt up the Buy Now Pay Later industry.”
Why would I bother using any of these “buy now, pay later” services including PayPal’s “Pay In Four”? Right now, I’m using PayPal Credit to pay off purchases interest free in SIX MONTHS and if not paid off in six months, interest will be charged. I’d rather pay off in 24 weeks and not a measly 6 weeks and also have a credit limit of $6,600.00 but, could be more, versus the paltry $1000 that couldn’t purchase certain spec’d out top end iPad, iPhone, Laptop, Desktop Computer, or Monitor from Apple. Now, Amazon and Apple do not have PayPal Credit as a means to purchase, which, at times, curtails my drive to purchase from them. Also, six weeks, what the fu*k does that accomplish versus putting the entire charge on a credit card? It’s definitely not that advantageous versus 24 weeks (six months)! And what happens if you have a late payment on Apple Pay Later? I see the image shown in the post has auto pay on but what if that option is not selected or not enough money in the bank account that the auto pay draws from, after all, we are living in a FJB economy. Then what? Does that hurt your credit score or limit your loan capability? Unless you are using a credit card as a means to pay off Apple Pay purchases which extends payment another month. But if you can’t pay off the credit card all at once you get finance charges. So, if that be the case, are you not just putting off interest charges? I could be wrong. Someone please explain why this “buy now, pay later” from ANY service provider as a payment option, is viable being it’s a constant hodgepodge of misc small purchases constantly being paid through this service via an app versus all those small misc low priced purchases accruing on a credit card and making a convenient one time payment a week or so later when the bill arrives in the mail. I don’t think there’s much there there.