Apple launches 'Apple Pay Later' buy-now, pay-later program

Apple (AAPL) is officially getting into the buy now, pay later game with the introduction of its new Apple Pay Later program. Announced at the company’s WWDC developers event last June, Apple Pay Later allows consumers to apply for Apple Pay Later loans of $50 to $1,000 to make purchases online or in-app purchases made through their iPhones or iPads.

For now, the program will only be available to randomly selected users who will get access to a pre-release version of Apple Pay Later in the Apple Wallet app.

Apple's Pay Later program lets you make 4 payments across 6 weeks. (Image: Apple)
Apple's Pay Later program lets you make 4 payments across 6 weeks. (Image: Apple)

“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,” Jennifer Bailey VP of Apple Pay and Apple Wallet, said in a statement.

“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.”

Consumers who use Apple Pay Later will see their purchases split into 4 payments spread across 6 weeks. In one example, Apple shows a $125 purchase split into 4 payments of $31.27 throughout a 6-week period.

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Though there are no fees and interest, users will, however, need to connect a debit card to your Apple Wallet to use Apple Pay Later to repay their loans. And if you don’t have enough cash in your bank account at the time of repayment, you could be assessed a fee by your bank.

Apple says that users’ credit won’t take a hit when they apply for a Apple Pay Later loan, since the service only does a soft credit check.

Apple is using Mastercard’s Installments program, meaning that any store that uses Apple Pay can also accept Apple Pay Later loans for purchases. What’s more, Apple Pay Later will be an option for customers alongside Apple Pay when they checkout online or via their iPhone and iPad apps. Apple already has a financial product via its Apple Card credit card.

The company’s move into the buy now, pay later space is designed to further grow its services business. Apple’s second largest revenue generator, services raked in $78.1 billion of the company's $394.3 billion in revenue in 2022. The iPhone, Apple's breadwinner, accounted for $205.4 billion.

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