Apple has launched a new payment service called Apple Pay Later that aims to help users manage their finances more easily. This feature allows users to divide their purchases into four payments over six weeks without incurring any interest or fees. Users can manage and repay their loans conveniently in the Apple Wallet, and can apply for loans ranging from $50 to $1,000, which can be used for online and in-app purchases on iPhone and iPad. While the feature is currently available only to a select few users, it will be available to all eligible users in the coming months.
The Vice President of Apple Pay and Apple Wallet, Jennifer Bailey, said that there is no one-size-fits-all approach when it comes to managing finances, and Apple Pay Later was designed with this in mind. The feature is intended to provide users with flexible payment options and make it easier for them to make informed and responsible borrowing decisions. With Apple Pay Later, users can apply for a loan within the Wallet without affecting their credit score. A soft credit pull is done during the application process to ensure that the user is in a good financial position before taking on the loan.
Once the user is approved, they can use the Pay Later option while checking out online or in apps on iPhone and iPad. The feature is built right into the Wallet, so users can seamlessly view, track, and manage all of their loans in one place. They can see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days. Users will also receive notifications via Wallet and email before a payment is due, so they can plan accordingly.
Privacy and security are essential aspects of Apple Pay Later. Purchases using Apple Pay Later are authenticated using Face ID, Touch ID, or a passcode, and users’ transaction and loan history are not shared or sold to third parties for marketing or advertising. Apple Financing LLC, a subsidiary of Apple Inc., is responsible for credit assessment and lending. Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall so that they are reflected in users’ overall financial profiles and can help promote responsible lending for both the lender and the borrower.
Apple Pay Later is enabled through the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers. When a merchant accepts Apple Pay, Apple Pay Later will be an option for their customers during checkout online and in apps on iPhone and iPad. Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.
In conclusion, Apple Pay Later is a useful feature that can help users manage their finances more effectively. It provides flexible payment options and makes it easy for users to make informed and responsible borrowing decisions. Privacy and security are central to the feature, and users’ transaction and loan history are not shared or sold to third parties for marketing or advertising purposes.
