Photo by Sumudu Mohottige via Unsplash
Apple has introduced its new pay later service in the US, allowing Apple Wallet users to split purchases into four payments, spread over six weeks.
With Apple Pay Later users can split purchases with no interest or fees, the company said, while all Apple Pay later loans can be tracked, managed, and repaid within the digital wallet.
Users can apply for 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.
The firm has already started 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.
She added, “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.”
Image from Apple
How does it work?
To get started with Apple Pay Later, users can apply for a loan within Wallet before being prompted to enter the amount they would like to borrow and agree to the Apple Pay Later terms. A soft credit pull is 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. Once Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase.
With Apple Pay Later in Wallet, users can 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.
Apple Pay Later has been enabled through the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement the option for their customers.
