Apple launches Apple Pay Later

Consumers can apply for Apple Pay Later loans ranging from USD 50 to USD 1,000, which can then be used for both online and in-app purchases carried out on iPhone and iPad with merchants that accept Apple Pay.

Apple Pay Later and what it means for consumers

As per the press release information, Apple is set to start inviting select users to access a pre-release version of the Apple Pay Later service, with plans for a complete rollout to all eligible users set to take place in the months to come.

Commenting on the launch, Jennifer Bailey, Apple’s VP of Apple Pay and Apple Wallet advised that there is no ‘one-size-fits-all approach’ for how people manage their finances, and as a multitude of users is looking for flexible payment options, the company introduced Apple Pay Later. As per their statement, the service was designed with the users’ ‘financial health in mind’, and as such, no fees or interest is applied, and it can be used and managed within the Wallet, which is believed to help simplify how consumers make informed and responsible borrowing decisions.

When getting started with Apple Pay Later, users can apply for a loan within the Wallet without having their credit impacted, following which they are set to be prompted to enter the amount they wish to borrow and agree to the Apple Pay Later terms. During the application process, a soft credit pull will take place to ensure that the user has a good financial position prior to taking on the loan. Once the user is approved, the Pay Later option will be visible when selecting Apple Pay at checkout, and they will have the option to leverage the service to carry out a purchase. Following the finalised set-up of Apple Pay Later, users are also enabled to apply for a loan directly within the checkout flow whenever making a purchase.

Apple Pay Later is built into the Wallet to help users view, track, and manage all their loans in a single place. Having Apple Pay Later in Wallet allows users to see the total due amount of all their existing loans, together with the total due amount in the following 30 days. What is more, they have the option to see all upcoming payments on a calendar view, which is believed to help them track and plan payments, with them set to receive notifications in Wallet and via email whenever a payment is due. In addition, users are set to be required to link a debit card as their loan repayment method from Wallet, as credit cards will not be accepted in an aim to help prevent users from taking on more debt to pay back loans.

Designed with privacy and security at its core, when leveraging Apple Pay Later for purchases, authentication is done via Face ID, Touch ID, or passcode, and users’ transactions together with their loan history are not shared or sold to third parties for marketing or advertising.

Apple Pay Later is provided by Apple Financing LLC, a company subsidiary responsible for credit assessment and lending, which plans to report the service’s loans to US credit bureaus so that they are reflected within the users’ overall financial profiles and promote responsible lending for the lender and borrower alike. The solution is enabled via the Mastercard instalment programme so that merchants accepting Apple Pay do not need to do anything to implement Apple Pay Later for their customers. For these merchants, the service is set to be an option at checkout. In addition, Goldman Sachs is the issuer of the Mastercard payment credential leveraged to finalise Apple Pay Later purchases.