Another Buy Now Pay Later Option Has Arrived – What Is Apple Pay Later?

As Buy Now, Pay Later becomes an increasingly popular payment option and Apple introduces their own BNPL, many wonder what is Apple Pay Later?


Mar. 29 2023, Updated 11:15 a.m. ET

If you’ve ever wanted to make a purchase but didn’t have the funds in your bank account at that moment and didn’t want to put it on your credit card due to interest, you may have considered a Buy Now, Pay Later option.

With consumers stretching their budgets during economic uncertainty and high inflation, Apply Pay just announced their own BNPL platform, Apple Pay Later, allowing customers to pay for purchases in installments.

So, what is Apple Pay Later, and how does it work?

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What is Apple Pay Later?

Apple Pay Later is a handy buy now, pay later option that allows customers to split up payments for a purchase into four equal installments over six weeks, and they won’t be charged interest or fees.

Apple users can apply for this short-term loan for $50 to $1,000 from within the Wallet app, and since it’s a soft credit inquiry, there’s no impact on your credit score, and you’ll know if you’re approved in seconds.

Apple is now rolling out this payment option to select users in the United States, with plans to extend it to everyone in the next few months. Apple Pay Later will be accepted by online and in-app merchants that accept Apple Pay.

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How does Apple Pay Later Work?

With Apple Pay Later and other BNPL payment options, you can make a purchase using an iPad or iPhone with merchants who accept Apple Pay.

"There's no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we're excited to provide our users with Apple Pay Later," said 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 can be used and managed within Wallet."

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To use Apple Pay Later, apply for a loan within Apple Pay at checkout, enter the amount you'd like to borrow, and agree to the Apple Pay Later terms. A soft credit pull will be done to make sure you're in good financial shape.

Once approved, you'll see the Pay Later option when you select Apple Pay during checkout, either online or in an app, and then you can use Apple Pay Later to make the purchase. Once you're set up, you can apply for a loan directly in the checkout flow when making a purchase.

How do you repay your loan?

Since Apple Pay Later is built into the Wallet, you can easily view, track, and manage the loan from there. It’ll show the total amount due for the loan and the next 30 days.

You’ll be asked to link a debit card from Wallet as your loan repayment method, and credit cards are not accepted.

You can view all upcoming payments in a calendar view to track and plan payments. Before payment is due, you’ll receive a notification in Wallet and via email.

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