Apple has introduced a new payment feature for its users in the United States – Apple Pay Later. Although the service was initially announced in 2022, it was subsequently delayed until now. This new feature allows users to split their purchases into four payments over six weeks, with zero interest and no fees. The feature is available for purchases made on iPhone and iPad with merchants that accept Apple Pay. Apple plans to offer the feature to all eligible users in the coming months, but a prerelease version is currently available to select users.
The company stated that Apple Pay Later has been designed with users’ “financial health” in mind. According to Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet, “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.” Bailey also highlighted that Apple Pay Later was designed to make it easier for consumers to make informed and responsible borrowing decisions.
To get started with Apple Pay Later, users can apply for a loan within the Wallet app on their iPhone or iPad. The application process involves a soft credit pull to ensure the user is in a good financial position before taking on the loan. Once approved, users can select the Pay Later option when checking out online or in-app, and they can also apply for a loan directly within the checkout flow.
All of a user’s Apple Pay Later loans are conveniently managed within the Wallet app, where users can view, track, and manage all of their loans in one place. 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 track upcoming payments on a calendar view in Wallet to help them plan their payments. Before a payment is due, users receive notifications via Wallet and email so they can plan accordingly.
Apple Pay Later has been designed with privacy and security at its core. Purchases 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 Financing LLC, a subsidiary of Apple Inc., is responsible for credit assessment and lending for Apple Pay Later loans. Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall, which can help promote responsible lending for both the lender and the borrower.
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. Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.
