Apple Pay Later Goes Live: How It Works
Apple Pay Later, a feature that allows users to split a payment into four installments over a six-month period, is now rolling out to…
Apple Pay Later, a feature that allows users to split a payment into four installments over a six-month period, is now rolling out to select users. The soft-launch started Tuesday for select users running iOS 16.4 on a compatible device, on a seemingly-random basis.
The payment service was first announced at the Worldwide Developers Conference in June 2022, and adds to Apple’s financial suite of services. In addition to Apple Pay Later, the company also has Apple Pay, Apple Cash and Apple Card.
Apple Pay Later has a user-interface similar to that of the Apple Card, so people who use the company’s credit card will already be familiar with the service. Similar to Apple Card Monthly Installments, there is no interest or fees on purchases made with Apple Pay Later.
When buying a product with Apple Pay on an iPhone or iPad, users will start to see a Pay Later option at checkout. To use Apple Pay Later, tap this option and follow the prompts. The service is available on purchases between $50 and $1,000, and essentially functions as a personal loan.
Does it affect your credit?
Luckily, users won’t have to be worried about their credit score being affected by Apple Pay Later. When requesting to use Apple Pay Later to make a purchase, Apple will make a soft inquiry to a person’s credit. Unlike hard inquiries, soft credit inquiries do not affect a credit score.
Apple Pay Later will be available at a ton of online retailers right out of the gate since it’s backed by the Mastercard Installments program. Any online store that accepts Apple Pay will also accept Apple Pay Later, which is supported by Goldman Sachs.
Users can pay off an Apple Pay Later loan straight from the Wallet app on iPhone. By default, Apple Pay Later installments are set to be paid automatically every two weeks, so be sure that there’s enough money in the provided bank account to avoid overdraft fees. Credit cards can not be used with Apple Pay Later.
The pre-release version of Apple Pay Later is available to select users today, and Apple plans to fully roll out the feature “in the coming months.”