Apple Pay Later, a buy-now, pay-later tool that enables consumers to divide purchases into four installments over the course of six weeks, was released on Tuesday.
For the time being, only a small group of randomly chosen users will have access to a beta version of Apple Pay Later. All qualified customers will be able to access the function “in the coming months,” according to Apple.
According to Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, “Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and it can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”
Why should I use Apple Pay Later?
Users of Apple Pay will be able to apply for $50 to $1,000 loans through Apple Pay Later, which they may use for iPhone and iPad online and in-app purchases.
Users can start by submitting a loan application within the iOS Wallet app. The borrower will next be invited to input the desired loan amount and confirm their acceptance of the Apple Pay Later terms.
By choosing Apple Pay at checkout, the customer will see the Pay Later option after passing a “soft” credit check as part of the application process, according to Apple. Apple Pay Later loans can be tracked and managed by users in Wallet, and they will be notified through email and the app when payments are due.
According to the tech giant, payments made using Apple Pay Later are free of interest and fees thanks to the Mastercard Installments programme.
Purchase-now, pay-later plans
The use of buy-now, pay-later services like Klarna, Afterpay, and Affirm has increased recently. After making an initial payment, the services enable customers to make purchases and pay for them gradually.
Apple promised “a smooth and safe way to share the cost of an Apple Pay purchase” when it first unveiled its Pay Later service last year.