Apple Pay Later gives you 6 weeks to pay off interest-free loans

Apple Pay Later gives you 6 weeks to pay off interest-free loans

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Apple launched a new way to pay off expensive items on Tuesday.
Photo: Apple/Cult of Mac

A new Apple Pay Later service allows consumers to pay off purchases of under $1,000 in installments. No interest or fees are charged. And it’s not only for Apple products — the service can be used for any expensive item.

It begins rolling out on Tuesday with broad availability “in the coming months,” according to Apple.

Apple Pay Later lets shoppers buy now then pay in installments

While Apple Pay Later is similar to the way credit card purchases work, Apple says, “there’s no one-size-fits-all approach when it comes to how people manage their finances.”

The service allows consumers to split purchases into four payments spread over six weeks.

Essentially, users of the service are taking a small loan from Apple Financing LLC, and they will have to prequalify for this loan. The loan can then be used to make purchases with merchants that accept Apple Pay.

“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, VP of Apple Pay and Apple Wallet in a statement. “Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest.”

Managed through Apple Wallet

The new financing option lets users track, manage and repay their loans in the Apple Wallet app that comes preinstalled on iPhone.

They also apply for their loan from the Wallet app. Once approved, the Pay Later option will appear when Apple Pay is used at checkout online and in apps on iPhone and iPad.

Once the purchase is made, users can go to the Wallet app to see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days.

Users will need to link a debit card to Wallet to pay off their loans. A credit card can not be used for this.

Apple Pay Later rolls out slowly

The service is launching first in the United States, but not immediately for everyone. Apple will invite randomly selected users to get early access to a prerelease version of the service. Broader availability is coming later, as noted.

The service requires the recently launched iOS 16.4 and/or iPadOS 16.4.