Apple Pay Later is here to stretch your finances

Apple is finally launching Apple Pay Later, making it much easier to buy, buy, buy.

The tech giant announced this on Tuesday(Opens in a new tab) that Apple Pay Later is now available in the US

The Buy Now Pay Later (BNPL) service allows users to split payments into four installments over six weeks, with no interest or fees. Apple Pay Later was first announced at WWDC last year and was expected to come with the iOS 16 update. But it was hampered by “technical and engineering challenges” according to Bloomberg’s Mark Gurman(Opens in a new tab).

Starting today, the service is available to “randomly selected users” and will continue to roll out to more users over the coming months.

How Apple Postpay works

In Apple Wallet, iPhone and iPad users can apply for Apple Pay Later loans between $50 and $1,000. If users are in good financial standing, they are approved to use Apple Pay Later for online checkout and in-app purchases. According to the announcement, the approval process, which involves a soft credit pull, will not impact user credit. Users can track their payments in Apple Wallet and receive an email and Wallet notification before their payment is due. Apple Pay Later users must use a debit card linked to Apple Wallet, credit cards are not allowed.

Track all your outstanding payments in Apple Wallet.
Credit: Apple

Apple’s foray into lending is an assertive attempt to pin users down to the Apple ecosystem. Apple Pay Later makes Apple devices even more indispensable now that they’re linked to your finances. BNPL services like Klarna, Affirm, Afterpay and now Apple Pay Later are essentially the same layaway plans that have been around forever. But instead of making the occasional big purchase like a TV or sofa, do this with whatever you’re tempted to buy. No interest, no extra costs and receiving your purchase right away with the first payment is a tempting concept that has become extremely popular in recent years.

Apple Pay Later appears when you’re ready to make your purchase.
Credit: Apple

But it is also a very easy way to build up debt. “Because it is easy to get these loans, consumers may end up spending more than expected,” the Consumer Financial Protection Bureau said in a 2021 statement announcing an investigation(Opens in a new tab) in BNPL services. The research also pointed to potential risks to data collection and possible inadequate consumer protection.

Apple assures users that Apple Pay Later data is private and protected. Payments are verified via Face ID, Touch ID or passcode and user data is never shared or sold to third parties.

The BNPL service is operated by Apple Financing LLC, which plans to report loans to U.S. credit bureaus this fall “so that they are reflected in users’ overall financial profiles,” the announcement said.