Finally, Apple launched its highly anticipated Apple Pay Later on March 28, 2023.
Through this feature, Apple provides their customers with the provision to split their eligible amount into four equal installments which are divided over the course of six weeks when they check out in-app through Apple Pay or online.
The most attractive feature is that the four installments come with no additional interest.
Speaking in simple terms, Apple Pay Later is essentially a loan provided by the company to their beloved users.
Currently, the feature is available only to select customers but the company is planning to make it available to all customers soon. Customers who are eligible for the offer will be able to avail of the service in the coming months.
The news about Apple Pay Later was first announced in June 2022 during the Worldwide Developers Conference. Even though it’s almost a year after the announcement of the feature, it has still not become available for all eligible customers as there were some delays involved with the program in the fall.
By launching the Apple Pay Later feature, Apple became the latest tech giant to step into the ‘buy now, pay later’ method. This mode of shopping is something that has become a global phenomenon after the effects of the pandemic.
The vice president of Apple Pay and Apple Wallet Jennifer Bailey stated that the team was very much excited to provide this service to their customers.
According to the words of Jennifer Bailey, when it is a matter of managing their finances, there is no one size fits all approach. She also added that as most people nowadays are looking for a flexible mode of payment, the company was more than happy and excited to provide its users with the service.
Apple Pay Later – How Does It Work?
Through the Apple Pay Later feature, customers will be provided the opportunity to split their bill into four equal halves which could be paid over the course of six weeks. Each installment is due two weeks apart but the first installment should be paid at the time of purchase.
So, if you are making a payment of $500, then the bill would be split into $125 where you will have to pay $125 at the time of checkout. The remaining three installments of $125 are due every two weeks.
The structure of splitting the bill into four equal installments is a common mode of payment among almost all companies that offer the ‘buy now, pay later’ (BNPL) feature. But some features set Apple Pay Later apart from other BNPL providers.
One of the most important features is zero interest and no fees, which is a feature not offered by many BNPL providers. Apple Pay Later can be used by customers at any place that accepts Apply to pay in-app or online.
Apple Pay Later – How To Get It?
Customers who are willing to make use of the Apple Pay Later feature and access the feature through their Apple Wallet. Currently, the loan amount that customers can receive through Apple Pay Later ranges from $50 to $1,000.
Apple has not made any statements about the minimum credit score that is needed to avail of the feature but the company said to run a credit check if you are one to apply. The credit check does not affect your credit score.
Compared to other similar features, the BNPL applications tend to be very short and the credit score is said not to affect the eligibility to qualify for the feature but some other factors could affect the eligibility like the fund that is available on the card that was used at the checkout and also the history of the customer with the company.
After the user is eligible to check out using Apple Pay Later, the details regarding the upcoming payments and the due date will be available on the tier Apple wallet app.
Also Read:- JP Morgan Chase Chief Executive Jamie Dimon To Be Deposed In Epstein Lawsuits
Apple Pay Later – Is It Safe?
Just like almost every program from Apple, the company also[puts the safety of the users as a prior concern when it comes to Apple Pay Later.
The feature is equipped with different security protections like face ID, Touch ID, or a password which makes sure that the feature is inaccessible to anyone other than the original owner.
The company also assures that any details regarding the cards or the payments are never revealed to any third-party agencies or marketing or advertisements.
The latest feature Apple Pay Later is offered by Apple Financing LLC. It is a social subsidiary of Apple Inc., and the agency is the one that is responsible for credit assessment and lending.
The agency is also planning to repost Apple Pay Later to the United States Credit Bureaus in the coming fall. Doing so will also benefit the user in their overall financial profile and also promote a sense of responsible lending for both the lender and the receiver.
Also, the Mastercard payment credential that is used to complete any purchase using Apple Pay Later is issued by Goldman Sachs.
