Apple Pay Later — Everything You Need To Know

At WWDC this year, Apple announced a new payments service named Apple Pay Later. As the name indicates, it is a part of the Apple Pay and will work similar to the existing service, but instead of paying the full price of the purchase upfront at the time of the transaction, it allows users to split the payments over time.

Here’s everything you need to know about the Apple Pay Later financial service from the technology giant.


What is Apple Pay Later?

The Apple Pay Later is basically the foray of Apple into the world of “Buy Now, Pay Later” financing services. It will be available for users who are already using the Apple Pay service. As the name indicates, it allows users to finance a purchase over a short period of time.

It allows users to split the cost of an Apple Pay purchase into four equal payments that can be made over the course of six weeks, similar to what companies like PayPal, Affirm, and Klarna are already offering.

How to use Apple Pay Later?

For using the service, the user will first need to apply and receive approval from the company. Given that it’s technically a lending service, Apple will run a credit check and make a decision to offer the loan for financing purchases. For handling credit checks and financing, the company is using its own subsidiary named Apple Financing LLC.

Once the service is approved, the user will be able to utilize it from the Wallet application and will also get an option to use this service when making purchases using Apple Pay.

While not yet confirmed, some reports have pointed out that Apple will allow users to borrow only up to $1,000 while using the Apple Pay Later service. Once the purchase is completed, users will be able to make regular payments from the Wallet app.

What’s the charge for using Apple Pay Later?

Apple is claiming that it will charge “zero interest” and “no fees of any kind.” It is not yet known what the company will do in case a user misses one of the payments.

It appears that Apple will automatically deduct the amount from the user’s bank account on the date of the payment due and if the account does not have sufficient funds, then the bank may charge an overdraft fee to the user. It is not yet known what happens if the bank doesn’t allow overdrafts.

What and where will Apple Pay Later launch?

Apple has confirmed that the service will be launched in the United States this fall. While the company will bring the service to other regions, it is not yet known which countries are on the list and when will expand to other regions.

Also, within the US, Apple Pay Later may not be available in every state. The service is expected to launch along with the public release of the iOS 16, which is sometime in the fall of this year.