In August 2021, Apple announced the launch of its new service, Apple Pay Later, which enables users to make purchases and pay for them over time without incurring any interest or fees. Jennifer Bailey, VP of Apple Pay and Apple Wallet, stated that the service was created with users’ financial health in mind, providing a flexible payment option to make informed and responsible borrowing decisions. In this article, we will discuss how Apple Pay Later works, its benefits, and how it could affect the buy-now, pay-later space.
What is Apple Pay Later?
Apple Pay Later is a buy-now, pay-later program that allows users to split their purchases into four interest-free payments over six weeks. The service can be used and managed within Apple Wallet, which makes it convenient for consumers to monitor and control their spending. Apple Pay Later is available to all US Apple Pay users with a compatible iPhone, iPad, or Apple Watch.
How Does Apple Pay Later Work?
Users who want to use Apple Pay Later need to apply for approval, and the process only requires a soft credit check, which means it won’t affect your credit score. Once approved, users can use the service to make purchases up to a certain limit. The limit depends on users’ creditworthiness and is subject to change over time.
When users use Apple Pay Later to make a purchase, the total cost of the purchase is divided into four payments, spread out over six weeks. Users will be required to make the first payment at the time of the purchase. The remaining three payments will be automatically charged to the user’s debit card, which must be connected to their Apple Wallet account.
Benefits of Apple Pay Later
One of the primary benefits of Apple Pay Later is that it offers a flexible payment option without any interest or fees. This makes it an attractive alternative to credit cards, which can have high-interest rates and fees. Apple Pay Later is also designed to be user-friendly and convenient, as it can be used and managed within the Apple Wallet app.
Apple Pay Later and the Buy-Now, Pay-Later Space
Apple Pay Later’s entry into the buy-now, pay-later space could have significant implications for the industry. Apple’s brand recognition, extensive customer base, and user-friendly design could make it a formidable competitor to existing buy-now, pay-later companies.
Security and Privacy
Apple is committed to user privacy and security, and this extends to Apple Pay Later. All transactions made with the service are encrypted and protected by Touch ID, Face ID, or a passcode. Apple also does not share users’ personal information with merchants, and the company will not use the data for marketing purposes without users’ consent.
In summary, Apple Pay Later is a buy-now, pay-later program that offers users a flexible payment option without interest or fees. The service is designed to be user-friendly and convenient, making it an attractive alternative to credit cards. The move into the buy-now, pay-later space could have significant implications for the industry, as Apple’s extensive customer base and user-friendly design could make it a formidable competitor to existing companies. Overall, Apple Pay Later provides a secure and private way to manage your finances and make responsible borrowing decisions.
- How do I apply for Apple Pay Later?
Users can apply for Apple Pay Later within the Apple Wallet app. The process only requires a soft credit check and can be completed in a few minutes.
- What is the maximum purchase limit for Apple Pay Later?
The maximum purchase limit depends on users’ creditworthiness and is subject to change over time.
- Do I need to pay interest or fees to use Apple Pay Later?
No, Apple Pay Later does not charge any interest or fees for using the service. However, if you don’t have enough money in your bank account to cover the payment, you could be assessed a fee by your bank.
- Is Apple Pay Later available outside the US?
At the moment, Apple Pay Later is only available to US Apple Pay users. It is unclear whether Apple plans to expand the service to other countries in the future.