Apple Pay Later is Apple’s answer to the buy now, pay late (BNPL) business model. has announced users will be able to use the service to request Pay Later loans from $50 to $1,000, and then repay the loans with four installments over six weeks. There is no interest or fees.
Apple Pay Later is a feature within Apple Wallet that allows you to avoid paying full price immediately for a product. Apple first announced the service at WWDC last year. It has been in development for some time. It was originally supposed to launch with iOS 16. However, Bloomberg‘s Mark Gurman reported that developers were having technical and engineering problems. delayed its rollout.
Apple claims that users can apply online for a loan through the Apple Wallet, “with no credit impact.” However, the company warns that users may be subject to credit bureau reporting if they use the Pay Later option to pay for their loan. Apple claims that users will be able view and manage their loans through the Wallet app, and they will receive notifications when payment due.
However, not everyone can access the service right now. Apple claims that invites will be sent to “randomly selected users” to gain early access to Apple Pay Later. This service is available only in the US, and can be used to make in-app and online purchases using iOS 16.4 or iPadOS 16.4.
Apple launched a credit-card in partnership in 2019 with Goldman Sachs, but this BNPL offering marks Apple’s first attempt to manage the financial side of things. Apple noted that the Pay Later program is now managed by Apple Financing LLC. This subsidiary is responsible for credit assessment, lending, and customer service.
Despite Apple’s emphasis on financial health, BNPL systems like Klarna and Afterpay have been criticized in the past for possibly harming customers. The Consumer Financial Protection Bureau (“CFPB”) “identified several areas that could cause consumer harm,” according to the CFPB. This includes inconsistent consumer protections and a high rate of data harvesting. It also stated that BNPL systems like Klarna, Afterpay, and Affirm have been accused of potentially harming customers.
In Wallet, users can see their Apple Pay Later loan payments. A calendar view displays the user’s loan due dates over a 30-day time period.
Apple doesn’t actually offer Apple Pay Later. Apple Financing, a subsidiary of Apple, handles credit assessment and lending. Apple Pay Later loans will be reported to U.S. credit agencies starting in the fall. Apple Pay Later for merchants is made possible by the Mastercard Installments program. Goldman Sachs serves as the issuer and processor of the Mastercard payment credential that allows Apple Pay Later purchases to be completed.