Apple Pay Later gets limited iPhone launch, here’s what you need to know

After months of waiting, Apple has finally announced the availability of Apple Pay Later with a soft launch. The company announced in a press release that it has started inviting select users to access a prerelease version of Apple Pay Later, with plans to offer it to all eligible users in the coming months.

“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,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “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.”

The service is available only in the US, and it’s designed with users’ financial health in mind. The service allows users to split purchases into four payments spread over six weeks with no interest and no fees. Users can easily track, manage, and repay their loans in one convenient location in Apple Wallet. Users can apply for service loans of $50 to $1,000, which can be used for online and in-app purchases made on iPhones and iPad with merchants that accept Apple Pay.

How does Apple Pay Later works?

To get started with the service, users need to update to iOS 16.4. They can apply for a loan within Wallet with no impact on their credit. They will then be prompted to enter the amount they would like to borrow and agree to the service’s terms. A soft credit pull will be done during the application process to help ensure the user is in a good financial position before taking on the loan.

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 they can use the service to make a purchase. Once set up, users can also apply for a loan directly in the checkout flow when making a purchase.

In the iPhone Wallet, users can easily see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days. They can also choose to see all upcoming payments on a calendar view in Wallet to help them track and plan their payments. Before payment is due, users will also receive notifications via Wallet and email so they can plan accordingly. Users will be asked to link a debit card from Wallet as their loan repayment method; to help prevent users from taking on more debt to pay back loans, credit cards will not be accepted.

The service is enabled through the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers. When a merchant accepts Apple Pay, the new service will be an option for their customers during checkout online and in apps on iPhones and iPad. Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.