Apple has finally launched its service called Apple Pay Later for loans ranging from $50 to $1,000. Users can repay them over the course of six weeks with no fees or interest.
Apple has finally launched its take on the "buy now, pay later" business with the new service called Apple Pay Later.
This service will allow users to apply for Pay Later loans ranging from $50 to $1,000 and repay them over the course of six weeks with no interest or fees. The service will exist within the Apple Wallet and help users avoid paying the full price for a product upfront.
While Apple had originally planned to launch this service with iOS 16, the rollout was delayed due to technical and engineering issues. The service is currently only available for online and in-app purchases on iOS 16.4 and iPadOS 16.4 in the US.
Users can apply for a loan within the Apple Wallet without impacting their credit score, but the loan and payment history may be reported to credit bureaus and impact their credit. Once approved for a loan, users can use the Pay Later option at checkout in apps and online and can view and manage their loans within the Wallet app.
Apple Financing LLC, a new subsidiary of Apple, will manage the Pay Later program, which is responsible for credit assessment and lending. Apple partnered with Mastercard Installments to enable Apple Pay Later, while Goldman Sachs is the issuer of the Mastercard payment credentials.
Although Apple has focused on financial health, it's worth noting that BNPL systems like Klarna, Afterpay, and Affirm have come under fire in the past for potentially harming customers. The Consumer Financial Protection Bureau (CFPB) identified several areas of risk of consumer harm, including inconsistent consumer protections, data harvesting, and debt accumulation.
Currently, randomly selected users will receive early access invites to Apple Pay Later. This is a step forward for Apple, which previously launched a credit card in partnership with Goldman Sachs in 2019. With this BNPL offering, Apple handles the financial side of things by itself.
