Apple Pay Later: Apple launches its Pay Later service: On Tuesday, Apple launched Apple Pay Later, an online payment system that will split purchases into four payments over the next six weeks. With the news breaking, shares of Affirm, another buy-now, pay-later provider, fell by 7%.
You can avoid paying the full price for a product immediately with Apple Pay Later within the Apple Wallet. Apple first announced the service at WWDC last year, but it has been developing for quite some time. According to Bloomberg’s Mark Gurman, developers were grappling with “technical and engineering issues,” delaying its introduction with iOS 16.
The company is finally launching Apple Pay Later, its take on buy now, pay later (BNPL). Users of the company’s Pay Later service can borrow up to $1,000 and repay that loan with four payments over six weeks without incurring any interest fees or penalties.
Apply for, Track, and Manage Loans Seamlessly in Your Wallet
The Apple Pay Later loan application is available within Wallet, and it does not affect a user’s credit score. Apple Pay Later terms and conditions will then be displayed, and they can enter the amount for borrowing. Before taking on a loan, a soft credit pull will be performed to ensure the applicant is financially stable.
If an Apple Pay Later approval is granted, the user can select it at checkout online and in Apple Pay apps on iPhone and iPad. A loan application can also be made directly in the checkout flow when Apple Pay Later is set up.
What are some Advantages of Apple Pay Later?
Apple Pay Later is enabled by Mastercard Installments, so merchants currently accepting Apple Pay will not have to make any changes to adopt the software.
The company notes in the fine print that the Pay Later loan and payment history may be reported to credit bureaus and affect the user’s credit, even though users can apply for a loan through Apple Wallet without impacting their credit. The Pay Later option will appear when a user has been approved for a loan in apps and online. As soon as a loan is due, Apple says users will receive notifications within the Wallet app letting them know when it is due.
The service is only available to some today, however. It has been announced that Apple Pay Later will be available to “randomly selected” users soon. iOS 16.4 and iPadOS 16.4 are the only devices that support the service for online and in-app purchases.
How will Apple Pay Later Work?
Later on Tuesday, Apple will invite select users to test a prerelease version of Apple Pay; all eligible users can access Apple Pay then.
While checking out online or in apps on iPhones and iPads, Apple Pay users will see a “Pay Later” option. The checkout process will also include the option of applying for a loan. Face ID, Touch ID, or passcode will be used to authenticate software purchases.
Apple Wallet allows users to see the amount due on their existing loans and the amount due in the next 30 days. The repayment method will be linked to a debit card. You won’t be able to use your credit card.
“It is good for consumers to have more transparent and flexible payment options that can replace credit cards, especially if there are no hidden fees or late fees,” an Affirm spokesperson said.