In the last few years, buy now, pay later (BNPL) has become increasingly popular with online shoppers. As the movement continues to grow, Apple is now the latest company to announce it will be joining the market by launching its own service, “Apple Pay Later”.
The service itself will act like a loan that Apple users will be able to manage directly from their Wallet app. Once launched, Apple customers will be able to request anything from $50 to $1000 using the app, and the loan can be paid back in four installments with no fees or interest.
If a customer wants to apply for Apple Pay Later, it’s a simple process. They simply open their Wallet app and apply for a loan. This will do a soft credit search initially during the application process, followed by a final decision of approving or declining the credit.
After being approved for a final credit limit amount, the Apple user can use it when buying products online that accept Apple Pay. This will show up as a payment option before they make the purchase, so there’s no need to reapply each time.
When paying back the loan, Apple will take payments from a linked debit card. The customer will need to link their card before the application is accepted, and Apple has already stated that it won’t accept credit card payments for repayments.
The loans are repaid over a six-week period with no added interest or fees, and the customer will be able to check their loan status and upcoming payment schedule using the app.
When announcing the news in a blog post on its website, Apple said, “There’s no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later.
Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”