New innovations in technology have influenced all areas of our life, including our shopping habits. While we used to pay for goods and commodities with cash in earlier days, a change has brought us all the way to different types of card payments like credit and debit and from there, to the latest online payments.
While there are different means of online payments offered by different financial payment services, Apple Pay is definitely one of the most popular and preferred methods of payment for the majority of shoppers today.
Being one of the most successful and popular electronics companies, Apple Pay introduced by Apple allows its users to make payments at stores using their Apple device, either their mobile phone or Apple watch.
The payment is made using the Apple Pay Wallet feature available on the device. After its introduction, almost all major stores in the United States accepted Apple Pay as a valid payment method, making it very popular.
With Apple Pay being accepted by shops and shoppers, Apple has come out with another additional; feature to Apple Pay called Apple Pay Later which allows the user the provision to make payments over a fixed course of time in limited installments.
The feature was introduced by the company in late March 2023. According to the official website of Apple, Apple Pay Later was a feature introduced by the company in order to improve the financial stability and health of the people.
Through this article, we will be looking closely into the newly added feature and will explain in detail everything that you need to know about Apple Pay Later. So, read on to find out more about Apple Pay Later.
What Is Apple Pay Later?
Apple Pay Later is a feature introduced by Apple in order to improve the financial health and freedom of people who use Apple Pay for their purchases. Apple Pay Later is a form of buy now, pay later shopping experience, where the shoppers have the freedom to purchase their wanted goods and make the payment later in installments, over a limited period of time. The feature of Apple Pay Later was introduced in the United States by Apple on March 28, 2023.
According to the information shared by the company, Apple Pay Later can be used by an Apple Pay customer to pay later for the goods or services that they receive now. So, the amount that is to be paid will be divided into four equal halves and Apple Pay latter will allow the shopper to pay the full amount in four installments over a time period of six weeks.
When looking at the feature it might seem like any regular ‘buy now, pay later’ scheme but what sets Apple Pay Later apart from the rest is that there is absolutely no interest or any kind of additional fees to be made to enjoy this service.
The operations regarding Apple Pay Later can be easily managed through the Apple Pay wallet. Generally speaking, Apple Pay Later can be seen basically as a loan that is given by the company to its users.
Through Apple Pay Later, customers can loan from around $50 to $1,000. This amount can be used to make purchases at physical as well as online stores also. Currently, the service is not available for every Apple Pay user and is only provided to a select number of customers by the company., It is expected that Apple Pay Later will be made accessible for everyone in the coming months.
How To Apply For Apple Pay Later?
So, while Apple Pay Later is a very useful and convenient payment tool, the feature is not currently available to all users. As of now, there are only two ways through which you can enjoy the service of Apple Pay Later.
Apple now provides the service to a few customers who were selected by the company. So if you are not one of the selected customers, you can always apply for the approval of the service.
In order to apply for Apple Pay Later, customers can make use of the Apple Wallet feature on their Apple devices. While applying for the service, the customer will be asked to pick an amount that they would like to borrow.
After the application and the needed amount are submitted, Apple will run a soft credit check on the applicant. According to other reports, Apple will also be looking into the relationship of the customer with the company by examining their interactions and payments with different organs of the company.
Once the background information is examined and is acceptable to the company, Apple will approve the application for Apple Pay Later. Once the request is approved, there will be an additional option in the customer’s Apple Pay that allows them to use Apple Pay Later. Once the feature is completely set up in the device, the customer is free to use the feature in any of the stores that accept Apple Pay.
How To Use Apple Pay Later?
As mentioned above, Apple does not provide the service to everyone. Apple Pay Later is only available to a select number of users. So, in order to use the service you will have to be selected or invited by the company.
The next possible thing to do is to submit an application for the service and wait for the acceptance to use the feature by the company. As Apple Pay Later is basically a loan offered by the company, Apple will do a quick background check on your credits and finances before making the decision whether or not to offer you the service.
The credit check of the customer is done by Apple’s subsidiary Apple Financing LLC which will have the final say in approving the request of a customer. If your request for the service is accepted by the company, then there will be an Apple Pay Later option when you use Apple Pay.
According to a report published by Bloomberg in February, Apple not only checks the credit score and background of the person applying but also the history of the customer with the company.
This includes the details of the customer about their spending at different Apple stores, their transactions using Apple Pay, and also their Apple store transactions. So apart from the credit score of the applicant, the relationship between the customer and the company will also be assessed by Apple.
How to Manage Apple Pay Later Payments?
Apple Pay Later allows the user to make payments in installments for their goods or service over a period of over six weeks. The customer is expected to pay by the first installment of the payment at the time of receiving the desired product or service and the remaining amount is paid in installments. Future payments using Apple Pay Later can be easily managed through the Apple Wallet
According to the information shared by the company, the details regarding future payments will be available in Apple Wallet. So, if you are an Apple Pay Later customer, your Apple wallet will contain information about your upcoming payments like the due date of payment and the amount that will be debited from your account. Apple Wallet makes the process of managing upcoming payments by breaking them down easily for the customer.
Does Apple Pay Later Come With Additional Charges?
Apple Pay Later is a ‘buy now, pay later’ scheme provided by Apple for their Apple Pay uses. By using this feature, customers can pay for their products or services in different installments over the course of a fixed time period.
Even though it is basically similar to all the ‘buy now, pay later’ services offered by different companies or agencies, what truly sets Apple Pay Later apart is the fact that there is no additional payment needed to use the service.
What you heard is true. According to the information provided on the official website of Apple, the company says that it will not collect any interest or any type of additional fee from its customers for using Apple Pay Later.
As of now, Apple has clearly not mentioned what will happen if any of the customers was to miss making a payment on time. As for people who wish to make an early payment, it is also possible to do that manually.
Usually, the amount that is fixed previously will be deducted from the customer’s bank account automatically according to the payment’s due date. Also, it is not clear what will be the result if the bank account does not allow overdrives, Apple is yet to make the move clear on that possibility.
Apple has also made it clear that the card-issuing bank will deduct an amount in terms of a fine if the customer’s bank account has insufficient funds wi-hile withdrawing.
Is Apple Pay Later Available Everywhere?
The company has made it very clear that Apple Pay Later is currently available only in the United States. Even though it is only available in the United States as of now, the company is planning to expand its service to make it available globally.
But as of now, there is no clear information or hint on which country is on the list where the service will be made available. The fine print on the Apple Pay Later purchases screen mentions that the service is not available in some states in the United States. As of now, there is no clear information about the states where the service will be available once it is fully launched.
Is Apple Pay Later Safe?
Privacy is one of the major things that a customer must be worried about while making an online payment. Apple is a company that has a reputation for placing the safety and guarding the privacy of their customers first. Like almost all features of Apple, Apple Pay Later is also designed with the safety concern of protecting the privacy and vital entails of the customer.
Any payment made using Apple Pay Later needs to be authenticated by the user through a touch ID, photo ID, or passcode which is completely under the control; of the user.
Also, the company has made it clear that no additional information about the customer like their transaction details or loan history is sold to any third party for any kind of marketing or advertising.
Apple Pay Later is a service offered by another subsidiary organ of Apple, which is Apple Financing LLC. The agency will be the body responsible for lending and assessing the credibility of the customer through Apple Pay Later.
The company is currently planning to report the details of Apple Pay Later loans to the United States Credit Bureau. In doing so, the process will have an influence on the overall financial profile of the customer. Reporting the details of the loan to the credit bureaus are also believed to increase responsible lending on the part of both the lender and the borrower.
Apple Pay Later is a service that is enabled through the Mastercard Installment program. This means that merchants who already accept Apple Pay as a valid mode of payment do not need to implement Apple Pay Later, as the service will be automatically available for the customers.
If a merchant accepts Apple Pay, this means that Apple Pay Later will also be an option during the checkout and it will be available for the customers on their devices.
The same is the case with online payments too. The Mastercard payment credentials that are vital for completing any kind of payment that is done through Apple Pay Later are issued by Goldman Sachs.
Apple Pay Later And Apple Card – A Quick Comparison
So, if you are a customer who uses both Apple Pay and an Apple Card, you might be confused about which mode to complete your payment. The following things should be read carefully if you are also a customer who finds it difficult to make the voice between these two modes.
As we all know, an Apple Card is a credit card. These cards come with the perk of buying any product and having a long time period to pay that back. But the catch is that these cards come with interest on each purchase. Also, Apple cards will provide the user with different regards and cash back with each purchase.
As for Apple Pay Later, as it is not any form of credit card, the customer will be able to buy any product without the need of paying any interest. But this too comes with a catch. There is a spending limit of Apple Pay Later which is absent in Apple and also, Apple Pay Later does not provide the customer with any kinds of rewards like Apple Card.
So, which one should we use? The answer to this question is that the choice should be made according to the need. It is advisable to use Apple Pay Later if you are making a small purchase and it is always better to use an Apple Card if the purchase is comparatively bigger.
Frequently Asked Questions
- Does Apple Pay Later come with additional charges?
No. Apple Pay Later does not levy interest or any additional charges from the customers.
- Does Apple Pay Later have a limit?
Yes. Apple Pay Later will provide a loan ranging from $50 to $1,000 to its customers.
- Is Apple Pay Later Safe?
Yes. The service can only be completed by a face ID, finger ID, or password from the user.
- Is Apple Pay Later available for online purchases?
Yes. Apple Pay Later can also be used for completing online purchases.
Read More: What Is Apple Card And Should You Get One? Explained
