March 29, 2023
Apple has launched a buy now, pay later (BNPL) service that allows users to apply for loans ranging from $50 to $1,000 and repay them over six weeks in four interest-free payments.
The service, which is available through Apple Wallet, allows users to postpone full payment for a product. Apple first announced the service at WWDC last year, with plans to launch it alongside iOS 16; however, technical issues caused the release to be delayed.
To apply for a loan with Apple Pay Later, no credit check is required. However, users should be aware that their payment history and Pay Later loans may have an impact on their credit, according to the fine print. Users will see the Pay Later option during checkout on iPhone and iPad apps and online once they have been approved. The Wallet app allows users to manage and view their loans, as well as receive notifications when payments are due.
The service is currently only available in the United States to randomly selected users who have been invited. On iOS 16.4 and iPadOS 16.4, the service is also only available for online and in-app purchases.
The Pay Later program is managed by Apple Financing LLC, a new subsidiary that handles credit assessment and lending. While Apple collaborates with the BNPL program Mastercard Installments to enable Apple Pay Later, Mastercard payment credentials are issued by Goldman Sachs.
The sources for this piece include an article in TheVerge.
