Apple unveils Apple Pay Later, a new service enabling shoppers to finance their purchases through installments
Apple has announced the launch of Apple Pay Later, a service that allows users to pay for purchases over time in the United States. This new feature is available with iOS 16.4 and iPadOS 16.4, and can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay.
Apple Pay Later is a convenient way to spread the cost of purchases over six weeks, with no interest and no fees. Users can apply for loans ranging from $50 to $1,000, and the institution issuing the loans for Apple Pay Later is Goldman Sachs Bank USA.
To use Apple Pay Later, users will need to link a debit card from their Wallet as their loan repayment method. It's important to note that a user's bank may charge fees if their debit card account contains insufficient funds to make loan repayments.
During the application process, a soft credit pull will be done to help ensure the user is in a good financial position before taking on the loan. Apple Financing LLC is responsible for credit assessment and lending for Apple Pay Later, and they plan to report Apple Pay Later loans to U.S. credit bureaus starting this fall.
Upon purchase, a user's Apple Pay Later loan and payment history may be reported to credit bureaus and could potentially impact their credit. It's also worth noting that Apple Pay Later is subject to eligibility and approval, and it may not be available in all states or U.S. territories.
Mastercard and Goldman Sachs are involved in the implementation of Apple Pay Later, with Goldman Sachs issuing the Mastercard payment credential used for Apple Pay Later purchases. Apple Financing LLC may report past, current, or future Apple Pay Later loans.
Apple will begin 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. Merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers.
Users can track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet. Apple Pay Later splits purchases into four payments, spread over six weeks, making it easy for users to budget their expenses.
Starting today, Apple Pay Later is available for online and in-app purchases on iPhone and iPad. Users can apply for Apple Pay Later loans within Wallet with no impact to their credit.
