Apple has launched its new service, Apple Pay Later, in the US, allowing a limited number of randomly selected iPhone and iPad users to split purchases into four interest-free payments over six weeks, CNET reports.
The service is available for online and in-app purchases, with merchants accepting Apple Pay. However, not all merchants will be eligible to offer Apple Pay Later at launch.
Apple Pay Later: Here's What We Know
In a recent press release, Jennifer Bailey, vice president of Apple Pay and Apple Wallet, stated that Apple Pay Later was developed with the user's financial health in mind, allowing them to make informed and responsible borrowing decisions.
Users must reside in the United States and own an iPhone or iPad running iOS 16.4 or iPadOS 16.4 to be eligible for random selection and testing of Apple Pay Later.
Apple made clear that applying for an Apple Pay Later loan has no negative impact on a user's credit score. Upon purchasing, their loan and payment history may be reported to credit bureaus, impacting their credit.
Apple is officially launching Apple Pay Later, which allows users to split purchases into four payments with zero interest and no fees 💰
— Apple Hub (@theapplehub) March 28, 2023
Randomly selected users will be invited to get early access to a prerelease version in the U.S. pic.twitter.com/PJawcmyxil
Apple Financing LLC, an Apple Inc. subsidiary, is in charge of credit assessment and lending, and it plans to report Apple Pay Later loans to US credit bureaus starting this fall.
More Secure, Easier Payments
Apple Pay Later is based on the same secure platform as Apple Pay, and users can authenticate each transaction with Face ID or Touch ID.
Apple Pay Later also offers users a new and convenient way to manage loans. With this feature, users can seamlessly view, track, and manage their loans in one place.
The feature allows users to see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days. To help users track and plan their payments, they can choose to view all upcoming payments on a calendar view in Wallet. Notifications are also sent via Wallet and email to remind users of upcoming payments, ensuring they can plan accordingly.
Credit cards are not accepted to prevent users from taking on more debt to pay back loans. Instead, users will be asked to link a debit card from Wallet as their loan repayment method.
An Unexpected Move by Apple
Superchargednews tells us that Apple Pay Later was first previewed nearly a year ago at WWDC 2022. Apple plans to offer the service to all eligible users "in the coming months," according to the company. Chief Correspondent for Bloomberg, Mark Gurman, criticized the new rollout strategy, calling it "strange."
The move coincides with the growing popularity of the "buy now, pay later" market, with companies such as Affirm, Klarna, Afterpay, as well as PayPal and Amazon, offering similar services.
However, given the company's significant customer base and reputation for innovation and security, Apple Pay Later's entry into the market will undoubtedly impact the market.
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