Apple introduced Apple Pay Later, a proprietary installment service that allows Apple Pay users to pay for purchases in instalments. Instead of paying the entire amount at once, the new service offers to divide the payment into four payments, spread over six weeks – without interest and commissions. True, Apple’s installment plan is available only in the United States so far.
Users can apply for installments in Apple Pay Later in amounts ranging from $50 to $1,000. Money can be used to pay for purchases online and in apps for iPhone and iPad made in stores that accept Apple Pay. Users will be able to easily track, manage and repay their Apple Pay Later loans through the familiar Apple Wallet app.
Starting today, Apple will begin inviting select users to use the Apple Pay Later preview, and plans to roll out the service to everyone over the coming months.
“There is no one size fits all when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we are excited to provide our users with Apple Pay Later,” said Jennifer Bailey, Apple vice president of Apple Pay and Apple Wallet. “Apple Pay Later was designed with the financial well-being of our users in mind, so it has no fees or interest, and can be used and managed in Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”
To get started with Apple Pay Later, users will be able to apply for a Wallet loan without compromising their credit history. They will then be asked to enter the amount they would like to borrow and agree to the terms of Apple Pay Later. During the application process, a soft credit check will be performed to ensure that the user is in good financial standing prior to obtaining a loan. After the application is approved, the user will see the Pay Later option when choosing to pay using Apple Pay. After setting up Apple Pay Later, users can also apply for credit directly during the checkout process when making a purchase.
Apple Pay Later is built right into Wallet, so users can view, track, and manage all their loans in one place. Users will be able to see the total amount due on all their existing loans, as well as the total amount due in the next 30 days. You will be able to see upcoming payments as a calendar in Wallet. Before the payment due date, users will also receive notifications via Wallet and email to be able to schedule payments. Users will be prompted to link a debit card from Wallet as a loan repayment method, but credit cards are not accepted.
Apple Pay Later, like Apple Pay itself, requires authentication with Face ID, Touch ID, or a password, and users’ transaction and loan history is never shared or sold to third parties for marketing or advertising.
Apple Pay Later is offered by Apple Financing, an Apple subsidiary responsible for credit scoring and lending. Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall so that they show up in the general financial profile of citizens and help promote responsible lending for both lenders and borrowers. Apple Pay Later is supported through the Mastercard Installments program, so merchants who accept Apple Pay don’t have to do anything to implement Apple Pay Later. If a merchant accepts Apple Pay, Apple Pay Later will become an option for their customers during online and in-app checkout. The Mastercard payment details used to make purchases with Apple Pay Later are issued by Goldman Sachs.
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