Apple has finally launched Apple Pay Later, a major update to Apple Pay that allows users to split the cost of an Apple Pay purchase into four equal payments over six weeks without interest or late fees.
Beginning Tuesday, Apple says it will invite randomly selected users to access a pre-release version of Apple Pay Later, with plans to make it available to all “eligible” iOS 16.4 or iPadOS 16.4 users in the coming months.
The selected Apple Pay users will be able to apply for Apple Pay Later loans ranging from $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.
“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,” Apple VP of Apple Pay and Wallet Jennifer Bailey said in a press release.
Users can begin using Apple Pay Later by applying for a loan through the Wallet app on iOS. They’ll then be asked to enter the loan amount and agree to the Apple Pay Later terms.
According to Apple, a soft credit pull will be performed during the application process, and once approved, users will see a “Pay Later” option when using Apple Pay at checkout online and in apps on iPhone and iPad.
Wallet displays a user’s Apple Pay Later loan payments. A calendar view shows a user when all of their loans are due over a 30-day period.
Apple Pay Later competes with buy now, pay later services from PayPal, Affirm, Klarna, Sezzle, and a slew of other companies.
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