Apple Pay Later vs Apple Card

What exactly is Apple Pay Later?

The new financial service Apple Pay Later, which is part of Apple Pay, will allow you to make online purchases and pay them back over six weeks in four equal payments. No interest or fees will be charged. When Apple launches it, it will be available in your iPhone's Wallet app.

For example, if you want to buy a $100 The US Dollar Bill AirTag Wallet but don't want to pay the entire amount at once, you may use Apple Pay Later to order the wallet and pay for it in four $25 payments every two weeks. You will pay $100 in whole, with no fees or interest.

apple pay later how it work

Also, because Apple Pay Later will be integrated into Apple Pay, it should be 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 keep them on your device or on its computers using this way.

Where can I use Apple Pay Later?

Apple Pay Later will initially be accessible exclusively in the United States. You may use it in any retailer that accepts Apple Pay.

When will Apple Pay Later be available?

According to reports, Apple Pay Later will be released sometime in spring 2023. Although Apple announced its new financial feature during the iOS 16 keynote, the rumor mill suggests that the company is battling technical issues and is still not ready to launch Apple Pay Later to the public.

How will Apple Pay Later work?

According to rumors, the new financial function would most likely be limited to a maximum transaction value of $1,000

The amount you will receive will calculated by your credit report and score. "Loans are subject to eligibility checks and approvals," Apple added.

Cupertino will also use customer data for identity verification and fraud prevention. As a result, if you have a strong financial standing with Apple and other institutions and have avoided fraudulent practices, you are more likely to be authorized for Apple Pay Later.

Who is going to lend you money for your Apple Pay purchases? Cupertino, on the other hand, will not use Goldman Sachs to lend money for its Apple Pay Later option, as it does with Apple Card. To fund your spending habits, Apple will use its own company, Apple Financing LLC. So, in essence, you will repay your debt to Apple rather than a bank.

In terms of technology, Apple will use Mastercard's infrastructure to link customers and merchants. When a customer uses Apple Pay Later to make a purchase, the retailer will receive a 16-digit card number produced by Goldman Sachs, indicating that the payment was made using Apple's new financial service.

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, according to Apple. There has been no announcement on whether an application procedure would be implemented.

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.

Below the line

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, Apple Pay Later is unlikely to work for any transactions over $1,000. If there is a $1,000 limit, you will need to use the Apple Card or another form of credit service.