Apple (finally) releases Apple Pay Later

  • After an extended waiting period, Apple launched its Apple Pay Later service yesterday.
  • Pay Later allows consumers to split up single purchases into 4 payments over 6 weeks.

Email a Friend

Apple (finally) releases Apple Pay Later

After an extended pre-launch period, Apple launched Pay Later yesterday. Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees.

How it works: Based in Apple Wallet, users can apply for Apple Pay Later loans of $50 to $1,000. These short-term loans can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay.

apple launches Apple Pay Later
Source: Apple
  • Apple uses a soft credit pull during the application process.
  • After a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase.
  • Once Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase.
  • Apple plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall.

Pay Later is being rolled out slowly, as Apple randomly selects users to participate in the new program.

Apple's deepening foray into financial services: Apple Pay Later is offered by Apple Financing, a subsidiary of Apple. This arm is responsible for credit assessment and lending.

  • For merchants, Apple Pay Later is enabled through the Mastercard Installments program.
  • Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.

For its part, Goldman Sachs, which has backed the Apple Card since its launch, has significantly changed its commitment to its digital retail banking offering, Marcus. After restructuring its groups under the Platform Solutions group led by Stephanie Cohen, the bank is more focused on powering financial services for 3rd parties like Apple, as opposed to going direct to consumer.

BNPL now: Apple's entry into BNPL comes as the industry anticipates more regulation. Buy Now, Pay Later is also facing growing blowback from customer protection organizations because of how BNPL has been marketed as a better alternative to revolving debt. See Tearsheet's coverage of BNPL.

0 comments on “Apple (finally) releases Apple Pay Later”

Banking, Payments

How Venmo fosters financial responsibility through the Venmo Teen Account 

  • The Venmo Teen Account is wired into the existing Venmo account of parents to keep parents in charge.
  • The custodial account also offers personalized Mastercard debit cards for its younger customers to encourage smart spending decisions from an early age.
Sara Khairi | June 07, 2023

Challenges facing Paze: Jostling for position in a crowded digital wallet space

  • EWS launched its digital wallet service Paze, earlier this year. But Paze is coming into a space where incumbents have become deeply embedded.
  • What challenges await the new digital wallet service?
Rabab Ahsan | June 06, 2023

Citizens and Mastercard roll out first-of-its-kind Touch Card in the US for the visually impaired

  • To enable more inclusive payments for the sight impaired, Citizens has rolled out America's first touch card for its high net-worth clients.
  • Touch cards are an emerging card standard designed to provide a greater sense of security, inclusivity, confidence, and independence to visually challenged consumers.
Sara Khairi | June 06, 2023
Banking, Payments

Santander embraces the Earned Wage Access trend, taps DailyPay to strengthen client relationships

  • Santander Bank has tapped DailyPay to incorporate the Earned Wage Access offering into its treasury management in a move to benefit its commercial banking clients in the US.
  • The EWA offering can serve as an impactful tool for bank clients, bolstering the bond between the employee and the employer as well as establishing a sound footing for their businesses. In turn, it deepens the client-bank relationship and reinforces the growth that they can achieve together.
Sara Khairi | June 01, 2023
Lending, Payments

Can lenders improve the financial health of consumers through design?

  • Design can play a critical role in improving consumers' financial health when it comes to lending.
  • Research by the Financial Health Network shows that areas like defaults, making payments, and borrowing the right amount can be significantly improved through behavioral design principles, to ensure customers make decisions that improve their financial well-being.
Rabab Ahsan | May 26, 2023
More Articles