Apple Introduces Pay Later Service, Now Available To Select Users

Apple is the latest company to get in on the buy now, pay later trend with its newest service known as Apple Pay Later.

“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.

Let’s take a look at everything you need to know.

How It Works

Apple Pay Later will allow buyers to split purchases between $50 and $1,000 into 4 payments — paid over the course of 6 weeks — without interest or additional fees.

Users apply for loans within the Apple Wallet app and can choose to utilize Apple Pay Later for purchases made online or within apps through an iPad or iPhone at any seller that accepts Apple Pay.

Apple says that a smaller group of users will be invited to “access a prerelease version of Apple Pay Later” today, March 29, 2023, but the general service will be rolled out to all eligible users in the coming months.

Is Apple Pay Later Worth It?

When prospective buyers apply for a loan within Apple Wallet, a soft credit check will be run to ensure that they’re in a strong enough financial position to take on the loan.

Once approved, the buyers will see the Apple Pay Later option during the checkout process. Users can then access and manage their loans in the Apple Wallet app and will receive notifications in advance of payments being taken from a debit card connected to the Apple Wallet app.

Credit cards will not be accepted for loan repayment, as to prevent users from assuming more debt to repay these loans. Therefore, you’ll miss out on any opportunities to earn credit card rewards if you choose to use Apple Pay Later.

Apple Pay Later purchases are authenticated by Face ID, Touch ID, or a user’s numerical passcode. Loan and transaction history are not sold to or shared with third parties, according to Apple. The company says it plans to report Apple Pay Later loan information to credit bureaus as of the fall, which means they’ll soon be a factor in users’ credit profiles.

Hot Tip: Did you know that Apple offers its own credit card, in partnership with Goldman Sachs? Read our full review of the Apple Card here!

Overall, Apple Pay Later can make sense to avoid interest or additional fees on eligible items between $50 and $1,000. At the same time however, you’ll forfeit the opportunity to earn points and miles on your purchases.

Final Thoughts

There’s no doubt that buy-now-pay-later services have become immensely popular in recent years. For those with large purchases to make, it represents a nice opportunity to split the purchase up into more palatable payments.

As always, whether you pay for your purchases in 1 payment or over the course of several, never take on more money than you can afford, and be sure to pay your balances on credit cards in full each and every month.