Apple today introduced Apple Pay Later in the U.S. Designed with users’ financial health in mind, Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees. Users can easily track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet.
Users can apply for Apple Pay Later loans $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. Starting today, 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.
“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. “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.”
Apply for, Track, and Manage Loans Seamlessly in Wallet
To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit. They will then be prompted to enter the amount they would like to borrow and agree to the Apple Pay Later terms. A soft credit pull will be 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, and can use Apple Pay Later to make a purchase. Once Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase.
Apple Pay Later is built right into Wallet, so users can seamlessly view, track, and manage all of their loans in one place. With Apple Pay Later in Wallet, users can easily 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. Before a payment is due, users will also receive notifications via Wallet as their loan repayment method; to help prevent users from taking on more debt to pay back loans, credit cards will not be accepted…
Mastercard and Goldman Sachs
Apple Pay Later is enabled through the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers. When a merchant accepts Apple Pay, Apple Pay later will be an option for their customers during checkout online and in apps on iPhone and iPad. Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.
The Wall Street Journal reported that Apple Inc. has introduced its buy now, pay later service in the U.S., marketing the tech company’s latest foray into financial services.
According to The Wall Street Journal, the service can be used to make online and in-app purchases with purchases with merchants that access Apple Pay, the company’s payment system. Users will be required to link a debit card as their loan repayment method and credit cards won’t be accepted for payments, the company said.
The move is another push by Apple to use finance to deepen its relationship with customers.
Purchases using Apple Pay Later are authenticated using Face ID, Touch ID or a passcode, the company said, adding that users’ transactions and loan history won’t be shared or sold to third parties for marketing or advertising.
In my opinion, this new Apple Pay Later offering could potentially help people make ends meet, especially if their job doesn’t pay on a weekly schedule. It also appears that Apple Pay Later is going to try to ensure that someone using the service doesn’t spend more than is good for their budget.