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Apple Pay Later Explained

Apple Unleashes "Pay Later" Feature Nationwide Amid Rising BNPL Trend

Apple has announced a new payment service called Apple Pay Later, which will allow users to make purchases without having to pay upfront. With Apple Pay Later, customers will be able to choose from two payment options: “Pay in Installments” and “Apple Pay Later“. The service is similar to ones from players like Klarna and Affirm which have become increasingly popular over the last few years.

Pay in Installments will allow customers to split the cost of their purchase into monthly installments, with interest rates that vary depending on the amount borrowed and the length of time to pay it back. Apple Pay Later, on the other hand, will allow customers to make purchases and pay for them at a later date, interest-free. Users will be able to apply for loans ranging from $50 to $1000 in value.

To use Apple Pay Later, users will need to have an Apple Pay account and a debit card linked to that account. When making a purchase, users can choose the Apple Pay Later option and select their preferred payment plan. The amount due will be added to the user’s Apple Cash balance, which can then be paid off over time.

One of the main benefits of Apple Pay Later is that it will simplify the checkout process for users, allowing them to make purchases without having to enter their payment information or wait for authorization. There will be a soft credit enquiry at the time of the loan. Defaulting on the payment of an Apple Pay Later loan will lead to a negative effect on their credit score.

It is being offered to some users at random starting today with widespread availability announced for later. Apple Pay Later is expected to roll out in the United States in the coming months, with plans to expand to other countries in the future. This new payment option will be available for purchases made at participating retailers and online merchants that accept Apple Pay.

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. 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. Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.

While Apple Pay Later is initially launching in the United States, the service could have significant relevance for India, which is currently experiencing a surge in digital payments.

India has seen a significant increase in digital payments over the past few years, with many consumers moving away from traditional cash-based transactions in favor of mobile wallets and other digital payment options. With the launch of Apple Pay Later, Apple could potentially tap into this growing market and provide Indian consumers with a more convenient and flexible payment option.

Additionally, it has to be noted that Apple has been steadily expanding its presence in India in recent years, with the company investing heavily in the country’s manufacturing and supply chain infrastructure. By offering Apple Pay Later in India, Apple could further solidify its position in the country’s rapidly growing digital economy.

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