Apple Pay Later service launches

Apple customers can now use Apple Pay to pay for purchases over time instead of all at once.


As announced earlier today, Apple has launched its new Pay Later service. With this, consumers can pay for purchases over time, spread between multiple smaller payments, rather than all at once. Touching on how this works further, an official post from Apple notes that users can split purchases into four payments spread over six weeks with no interest or added fees.

Additionally, users can apply for Apple Pay Later loans from $50 to $1,000 to use for online and in-app purchases made on iPhone and iPad, and with merchants that accept Apple Pay.

Examples of Apple Pay Later on iPhone showing how users can schedule and track payments
© Apple

What’s nice about things like the Apple Pay Later loan is that users can apply within Wallet with no impact to their credit score outside of a soft credit pull done during the application process. Also, because Apple Pay Later is built into Wallet, users can “seamlessly view, track, and manage all of their loans in one place.”

To ensure users aren’t putting themselves in a bad financial position in terms of debt, they’ll be asked to link a debit card from Wallet as their loan repayment method according to the post from Apple “to help prevent users from taking on more debt to pay back loans, credit cards will not be accepted.”

If you’re an Apple user looking to learn more about Apple Pay Later, or just curious in general, be sure to read through the full post on it from Apple. Also catch up with some of our previous coverage, including how WaveOne AI-powered video compression startup was acquired by Apple, and how the iOS 16.4 update expanded on SOS and Developer Program beta features.

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Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

From The Chatty
  • reply
    March 28, 2023 12:40 PM

    Morgan Shaver posted a new article, Apple Pay Later service launches

    • reply
      March 28, 2023 12:53 PM

      This just confuses me. There's no interest and no fees for the end user which is great but surely Apple is making money somewhere on this? Are they passing the cost on to the sellers if you're a seller that accepts Apple Pay?

      Like, what's their motivation? Is it just an attempt to get people to ask for Apple Pay to be accepted in more places so it becomes a device selling point?

      • reply
        March 28, 2023 1:10 PM

        I would guess the people who don't make the payments get caught up in compound interest and that's how they make the money.

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          March 28, 2023 1:21 PM

          Compound interest on 0 is 0, though.

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        March 28, 2023 1:28 PM

        They get the sale and a new phone into someone's hands. They then go buy stuff off their ecosystem. This taps into the market of people who can't pay $1000 for a phone now but can pay that $1000 over time.

        Sales numbers of phones goes up, app store revenues goes up, and looks good on quarter reports and thus stocks. They'll still get that money for the phone as an account receivable which gets recognized as revenue over time.

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          March 28, 2023 1:46 PM

          This isn't specifically related to phones. They've had this type of financing for phones for a long time now. This is more broadly available for anyone who accepts Apple Pay as a payment method.

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            March 28, 2023 1:56 PM

            I'm guessing that after the 6 week period there are fines/fees/interest involved

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              March 28, 2023 1:58 PM

              There's not according to the fine print. Only that you have to have a debit card backing it and they'll auto draw from it. Which may incur you bank fees if your account doesn't have balance to cover the transaction but Apple isn't getting a cut from that.

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            March 28, 2023 1:57 PM

            It might also be a motivation for someone to switch to the iOS ecosystem from Android

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      March 28, 2023 2:28 PM

      haha products too expensive? just pretend it's 1/4 as expensive.

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