In recent years, buy now, pay later services have grown in popularity in the US. Even Apple announced such a service called Apple Pay Later. If you are an Apple user, you may be wondering how exactly Apple’s new pay in 4 service works and how to use it. Well, in this article, we will explain things like how to use Apple Pay Later and what you will need in order to take advantage of Apple's latest financial service. Let's dive in.
What is Apple Pay Later?
Apple Pay Later is a buy now, pay later service. It allows you to purchase something online and pay it off over six weeks in four equal payments without any interest or fees. It's part of Apple Pay, and you can add it to the Wallet app on your iPhone — if you are an eligible user, that is.
Apple Pay Later is completely safe to use. The service needs confirmation through Face ID, Touch ID, or a passcode for making any transactions. Also, Apple states that it doesn't share or sell its users' transactions and loan histories to third parties. However, the company also says that "your Apple Pay Later loan and payment history may be reported to credit bureaus and impact your credit." So we guess you will need to be on point with your payments in order to have a spotless credit score.
Where is Apple Pay Later available?
Apple Pay Later is currently only available in the United States, excluding Hawaii, Nevada, New Mexico, Wisconsin, and the U.S. territories. So if you don't live in the states where Apple Pay Later is available, you can't use Apple's new financial service.
When did Apple Pay Later become available?
On March 28th, 2023, Apple announced that it had started inviting randomly selected users to access a prerelease version of Apple Pay Later, with plans to make the service accessible to more people in the following months. Apple Pay Later is not available to all users in the US, at least not at the moment.
How does Apple Pay Later work?
Apple users can request Apple Pay Later loans ranging from $50 to $1,000, which can then be utilized for purchases from websites and stores that accept Apple Pay. The loans can be repaid in four equal installments over a period of six weeks. And the best thing is that there is no interest or fees and the approval takes seconds.
For example, if you want to buy a pair of Jordans from Amazon that cost $455 and prefer not to pay the entire amount right away, you can use Apple Pay Later to order the shoes and pay for them in four installments of $113.75 every two weeks. You will pay the exact sum of $455 without any fees or interest. However, the first installment is due at the time of purchase. Also, Apple does a "soft credit pull" during your application process to check whether you can repay the desired sum or not.
Now comes the question: who lends the money for your Apple Pay purchases? Well, for its Apple Pay Later feature, the tech giant uses its own subsidiary called Apple Financing LLC to finance your spending habits. So basically, you pay your loans not to a bank but to Apple itself.
As for the technical part, Apple uses Mastercard's system to connect clients and merchants. When a user buys something through Apple Pay Later, the merchant receives a 16-digit card number generated by Goldman Sachs, showing that the purchase was made via Apple's new financial feature.
Which merchants accept Apple Pay Later, and how do you buy products?
Apple Pay Later can be used on websites that accept Apple Pay, but keep in mind that some merchants may not offer Apple Pay Later despite supporting Apple's payment service.
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You can buy products with Apple Pay Later directly at checkout. To do that:
- Select Apple Pay as your payment method
- Tap the Pay Later tab and tap Continue
- Check the details for your payment plan and loan agreement and tap Agree & Continue.
- Choose or add the debit card you want to pay your down payment with and follow the instructions on the screen
- Double-click the side button to confirm the payment.
You can also apply for Apple Pay Later loans in the Wallet app. All you need to do is:
- Open the Wallet app on your iPhone
- Choose New Purchase Amount
- Enter the desired amount plus estimated shipping and taxes
- Check the Payment Plan Example
- Tap Continue
- Once you are approved for the loan, which takes seconds, tap Done
The amount will be valid for 30 days to make a purchase. You will pass a final credit approval at checkout.
Who can use Apple Pay Later and how to apply?
At the moment, only eligible users can use Apple Pay Later. Also, you need to be at least 18 years old and a U.S. citizen or a legal resident with a valid U.S. address to take advantage of it. You will also need a debit card — credit cards are not supported by Apple Pay Later — and an iPhone or iPad running the latest version of iOS or iPadOS.
The first time you want to apply for a loan, you will need to add Apple Pay Later to the Wallet app and apply from there. After that, you will be able to apply for loans from the Wallet app and during checkouts.
To set up Apple Pay Later in the Wallet app:
- Open the Wallet app on your iPhone or iPad
- Go to Settings
- Choose Wallet & Apple Pay
- Tap Add
- Choose Set up Apple Pay Later and tap Continue
- After that, follow the instructions to apply for an Apple Pay Later loan. When asked to write the requested amount, enter the total value of the purchase plus shipping and taxes.
- Tap Next
- Confirm your name, date of birth, and address
- Choose Agree & Apply
- Tap Add to Wallet
What are the interest rates for Apple Pay Later's installment plans?
There are no interest rates for Apple Pay Later's installment plans. You don't pay interest or fees on the amount you owe. This is the reason why Apple Pay Later is so appealing.
What happens if I miss a payment or can't pay off my Apple Pay Later loan?
If you are past due on your loan, you won't be able to make new purchases using Apple Pay Later. However, you will still be able to make payments on your current loans. And when you don't have any past-due payments, you will be able to reapply for Apple Pay Later again. On its website, Apple states that there are no fees or interest even if your Apple Pay Later loan goes past due.
If you have difficulties paying your Apple Pay Later loans, you should contact an Apple Pay Later Specialist. You could also check if you are eligible for assistance.
How do I check my Apple Pay Later balance and transaction history?
You can use the Wallet app on your iPhone or iPad to track, manage, and repay all of your Apple Pay Later loans.
Preslav Mladenov is a News and Affiliate Content Writer at PhoneArena who started on his tech journalism journey in December 2021. With persistent knack for finding the best deals out there, he swiftly became a pivotal Affiliate Content Writer, guiding readers towards significant savings on a plethora of gadgets, including smartphones, smartwatches, tablets, Bluetooth speakers, and headphones. Mladenov's deep-seated knowledge of mobile tech, paired with a rich background in sales, empowers him to unearth the finest deals on the web.
