Apple Pay Later is finally here (in the United States). Designed with the user’s financial health in mind (whatever that means), now Apple Pay users can literally ‘pay later’ thanks to this latest financial service. According to Apple’s press release, users will be able to split the sum into four payments paid over six weeks. On top of that, there are no fees or interest either. But there’s a catch.
Cupertino-based tech juggernaut has entered the Buy Now, Pay Later (BNPL) market giving both Klarna and Affirm Holdings tough competition ahead. Users will be able to apply for loans ranging from $50 to $1,000 and pay it later in installments. Apple Pay Later is designed to be used on in-app and online purchases from iPhones and iPad running on iOS 16.4 and iPadOS 16.4 respectively. Note that the merchants should accept Apple Pay in order for you to avail of the BNPL service.
Talking about the catch here, the service isn’t available for all users. It is limited to a few randomly picked users in the United States and is an invite-only service at the time of writing this. Those who get invited to test out Apple Pay Later will be able to get their hands on the BNPL service and the ability to track every penny and the advantage of buying stuff now and paying over installments.
It is also true for those who are low on budget or those who will stretch out their wallet thanks to the ever-growing inflation and reducing purchasing power. It’s no doubt Apple will start taking a major chunk of the BNPL sector once it goes public in the coming few weeks.
Both Affirm Holdings Inc saw a decline of 7% while PayPal saw a dump of 1.5% during the midday trading on Tuesday. Apple Pay Later has partnered with Goldman Sachs to avail of the Mastercard Instalments program for those who will be using Apple Pay Later.
Users would be able to apply for loans and get instant approval while they check out online or during in-app purchases without much hassle. As of now, Apple Pay Later is available invite-only but as said, the service will be launched publicly in the coming months.