Apple Pay Later, the tech big’s entry into “purchase now, pay later,” providers, is launching within the US beginning Tuesday, however just for a restricted variety of individuals to start out. The service will let iPhone customers break up Apple Pay purchases into 4 equal funds unfold over six weeks.
Apple Pay Later shall be out there inside the Pockets app, the iPhone’s digital pockets app, alongside different funds options like Apple Card and Apple Money. Apple mentioned individuals will have the ability to apply for Apple Pay Later loans of $50 to $1,000, which may then be used for on-line and in-app purchases made on an iPhone or iPad. Folks can then observe and handle Apple Pay Later loans within the Pockets app, and can obtain notifications and e-mail earlier than their subsequent cost is due.
“Apple Pay Later was designed with our customers’ monetary well being in thoughts, so it has no charges and no curiosity, and can be utilized and managed inside Pockets, making it simpler for shoppers to make knowledgeable and accountable borrowing choices,” mentioned Jennifer Bailey, Apple’s vice chairman of Apple Pay and Apple Pockets, in a launch.
Apple introduced Apple Pay Later virtually a yr in the past at its 2022 Worldwide Builders Convention in June, saying it might be out there in iOS 16. Whereas not included within the preliminary launch of iOS 16, the funds characteristic is obtainable to some as a part of iOS 16.4 and iPadOS 16.4, which got here out on Monday.
Purchase now, pay later providers, or BNPL, have grown in reputation in recent times, with individuals spending $120 billion via these plans in 2021, in keeping with GlobalData. Firms together with PayPal, Amazon, Affirm, Klarna and Afterpay supply BNPL choices, in addition to some bank card suppliers. Whereas BNPL plans supply flexibility, some monetary consultants have warned the providers additionally include dangers, together with making it simpler for individuals overspend and accumulate debt.
Apple mentioned “randomly chosen customers” will get an e-mail invite to attempt a prerelease model of Apple Pay Later through the Pockets app beginning Tuesday. Apple will supply the service to all eligible customers “within the coming months,” the corporate mentioned. Folks have to be 18 years of age or older to make use of Apple Pay Later, and have to have Apple Pay arrange with a debit card.
Apple did not instantly reply to a request for added remark.