Apple has officially launched Apple Pay Later in the United States, allowing users to split the cost of an Apple Pay purchase into four equal payments over six weeks without being charged interest or late fees.
The interest-free payment service was first announced in 2022, but it didn’t soft launch until March 2023. Until now, customers have been randomly selected to participate in Apple Pay Later, but now it has fully launched for all eligible users.
Users can easily track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet. Users can apply for Apple Pay Later loans of $50 to $1,000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay.
Customers must apply for the program, and a soft pull on their credit is performed to determine eligibility. Even if the customer is approved for $1,000, the program is only eligible for the exact purchase amount.
Apple Pay Later Eligibility
Be 18 years or older
Be a US citizen or lawful resident with a physical address
Have a debit card in Apple Wallet set up for Apple Pay
Be using two-factor authentication for your Apple ID
May be required to verify identity with driver’s license or state-issued photo ID
Apply for, Track, and Manage Loans Seamlessly in Wallet
To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit. They will then be prompted to enter the amount they would like to borrow and agree to the Apple Pay Later terms.
A soft credit pull will be done during the application process to help ensure the user is in a good financial position before taking on the loan.
After a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase.
Once Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase.
Apple Pay Later is built into Wallet, so users can seamlessly view, track, and manage all of their loans in one place. With Apple Pay Later in Wallet, users can easily see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days.
They can also choose to see all upcoming payments on a calendar view in Wallet to help them track and plan their payments.
Before a payment is due, users will also receive notifications via Wallet and email so they can plan accordingly. Users will be asked to link a debit card from Wallet as their loan repayment method; to help prevent users from taking on more debt to pay back loans, credit cards will not be accepted.
Apple Pay Later was designed with privacy and security at its core. Purchases using Apple Pay Later are authenticated using Face ID, Touch ID, or passcode, and users’ transaction and loan history are never shared or sold to third parties for marketing or advertising.
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, so they are reflected in users’ overall financial profiles and can help promote responsible lending for both the lender and the borrower.
Mastercard and Goldman Sachs
Apple Pay Later is enabled through the Mastercard Instalments program, so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers. When a merchant accepts Apple Pay, Apple Pay Later will be an option for their customers during checkout online and in apps on iPhone and iPad.
Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.