Apple Pay Later, which allows users to split the cost of an Apple Pay purchase into four equal payments over six weeks without interest or late fees, is now available to all users in the United States.
Initially released to a limited number of users in March, Apple Pay Later was announced during the company’s Worldwide Developers Conference in June 2022. Users can apply for a loan within the Wallet app and, once approved, can select the “Pay Later” option when using Apple Pay at checkout. Payment information and reminders can be accessed in the Wallet app.
The new service allows users to pay for purchases in installments. The service is available to U.S. citizens or lawful residents with a physical U.S. address who are at least 18 years old. To use the service, users must set up Apple Pay with an eligible debit card on their device. However, if the user’s debit card account does not have sufficient funds to make loan repayments, their bank may charge them fees. Additionally, users may need to verify their identity with a driver’s license or state-issued photo ID.
Apple Financing manages the credit assessment and lending process for Apple Pay Later.
On the merchant side, Apple Pay Later is made possible through the Mastercard Installments program, and Goldman Sachs acts as the issuer of the Mastercard payment credential for all Apple Pay Later transactions.
As a result of this expanded launch, Apple Pay Later is now directly competing with buy now, pay later (BNPL) services offered by PayPal, Affirm, Klarna, and numerous other providers.