What exactly is Apple Pay Later?
Apple Pay Later is a financial service, part of Apple Pay, that allows you to make online purchases and pay them back over six weeks in four equal payments, with no interest or fees charged. As of its introduction in the U.S, Apple Pay Later enables users to apply for 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. Apple is initially inviting select users to access a prerelease version of Apple Pay Later, with plans to extend it to all eligible users in the coming months.
This service offers flexibility to users who are seeking for various payment options, with Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, noting that "Apple Pay Later was designed with our users' financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”
Also, because Apple Pay Later is integrated into Apple Pay, it is secure to use. Apple Pay is safer than using a physical credit, debit, or prepaid card,' promises Cupertino. Any transaction requires confirmation by Face ID, Touch ID, or password. Every time you make a purchase, a device-specific number and a unique transaction code are used. Apple does not share your identification or credit card numbers with merchants and does not store them either on your device or on its servers in this manner.
Who can use Apple Pay Later?
Apple Pay Later is available only in the U.S. It may not be available in all states. It is not available in U.S. territories.
Apple Pay Later is offered by Apple Financing LLC, a subsidiary of Apple Inc., which is responsible for credit assessment and lending. Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall, to help promote responsible lending for both the lender and the borrower.
How Apple Pay Later work?
Users can apply for a loan within the Wallet app without affecting their credit. During the application process, a soft credit pull is carried out to ensure the user is in a good financial position before taking on the loan. Once approved, they can see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad. Users can also apply for a loan directly in the checkout flow when making a purchase.
Apple Pay Later is integrated into the Wallet app, allowing users to manage all of their loans in one place. They can easily see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days. Furthermore, they can choose to see all upcoming payments on a calendar view in the Wallet to track and plan their payments. Before a payment is due, users will receive notifications via Wallet and email so they can plan accordingly. A linked debit card from the Wallet is required as the loan repayment method, to discourage taking on more debt to pay back loans.
How do I sign up for Apple Pay Later?
You will be able to apply for Apple Pay Later when making Apple Pay purchases or directly in the Wallet app. There has been no announcement on whether an application procedure would be implemented.
Before taking out a loan with Pay Later, you’ll need to be approved. The loan application can be found in the Wallet app, and Apple says applying for a loan will not impact your credit, although a soft credit pull will be done during the approval process.
To apply, you’ll tell Apple how much you want to borrow and will have to agree to a new set of terms and conditions for Pay Later. Once that’s done, Apple will check a few different metrics, including your current debts, public records (like recent bankruptcies and repossessions), and your credit score.
Apple also notes that, to apply for a loan, you’ll need to meet a few other requirements:
- 18+ years old.
- A U.S. citizen or lawful resident with a valid address and photo I.D.
- Have two-factor authentication set up.
- No freezes on your credit report.
How to buy products with Apple Pay Later?
When you use Apple Pay to make a purchase, you will have the choice to "Pay In Full" or "Pay Later." If you select the latter, you will apply for the Pay Later program and, if accepted, you will proceed with your purchase.
Keep in mind that in order to use Apple Pay Later, you must link your debit cards to the service, and the system will automatically collect payments from your bank account every two weeks until you opt out.
You will also be able to check how many installments you have left in the Wallet app, and if you find yourself with extra funds, you will be able to pay the next amount before the due date.
Apple Card or Apple Pay Later? Which one should I use?
The Apple Card is, admittedly, a credit card. Although there are no fees, you must pay interest on the borrowed funds. When using an Apple Card to purchase a product, you can pick a long repayment period, such as 12 or 24 months. You also get daily cash back when you use your Apple Card.
With Apple Pay Later, you may buy a product and pay the whole price without incurring any interest. However, the amount you may borrow will be limited. Furthermore, you will not be able to set the loan's payback time, and there will be no reward incentives when you use Apple Pay Later to make a purchase.
So, which one should you use? Everything depends on what you want to buy. Cupertino appears to prefer that you utilize Apple Pay Later for minor purchases and Apple Card for larger ones.
It would be preferable, for example, to use Apple Pay Later to purchase an AirTag Billfold Wallet. This way, you won't have to pay the entire amount all at once, and you won't have to pay any interest.
However, with Apple Pay Later, users are eligible to apply for loans within a range of $50 to $1,000. This means purchases that are $50 or more but do not exceed $1,000 can be made using Apple Pay Later. For purchases above this limit, you would need to resort to the Apple Card or another type of credit service.