Apple has finally introduced Apple Pay Later, the tech giant's foray into the buy now, pay later (BNPL) sector. The company has revealed that customers can apply for Pay Later loans ranging from $50 to $1,000, which can be repaid in four installments over six weeks without interest or fees.
Existing within the Apple Wallet, Apple Pay Later is designed to allow users to defer full payment for a product. Initially announced at WWDC last year, the service was originally slated to launch with iOS 16. However, Bloomberg's Mark Gurman reported in September that developers were grappling with "technical and engineering issues," resulting in a delayed rollout.
Apple says users can apply for a loan via the Apple Wallet without affecting their credit score. However, the fine print indicates that the Pay Later loan and payment history "may be reported to credit bureaus and impact their credit."
Once a loan is approved, the Pay Later option will be visible at checkout in apps and online on iPhone and iPad devices. Apple also notes that users can manage their loans within the Wallet app and receive notifications when payments are due.
At present, the service is not available to all users. Apple has indicated that "randomly selected" users will be invited to gain early access to Apple Pay Later. The service is currently limited to the US and can only be used for online and in-app purchases on iOS 16.4 and iPadOS 16.4.
In 2019, Apple launched a credit card in collaboration with Goldman Sachs. However, this new BNPL offering represents the first time Apple is independently managing the financial aspect. Apple Pay Later is overseen by a new subsidiary, Apple Financing LLC, which the company states "is responsible for credit assessment and lending." Apple has partnered with Mastercard Installments'
