This new service from Apple offers exactly what is expected, given its name. It will allow you to borrow funds through it and then repay them according to set terms. The Pay Later service has been in a testing phase recently and is now finally going live.
Apple Pay Later – Borrow up to $1,000
The minimum amount that users can borrow through Apple Pay Later is $50 and the maximum is $1,000. Users can use this money to make purchases at retailers that accept Apple Pay or for in-app purchases.
Loan applications are made through the Wallet app, where Apple Pay Later is integrated so users can track and manage all their loans in one place. There is also a calendar view of all upcoming payments and the user will receive, via the Wallet app and email, a notification and upcoming payment before the payment is due.
What about repayment?
The loan is only one half of the whole service and the other half is of course the repayment. Users must repay their obligations within six weeks, in four instalments, and the good news is that Apple Pay Later loans are currently free of fees and interest. This means that what the user borrows, that’s exactly what they pay back, and not a penny more.
A debit card from the Wallet app is used for repayment, while credit cards will not be accepted, to avoid racking up more debt. Payments through Pay Later are authorised via Face ID, Touch ID or a set password, and data relating to loan or transaction history is not shared by Apple with any third party.
For now, only in the U.S.
The service currently only works in the US, where only select users have accessed it for now. Apple will gradually expand it in its home country and the condition is to have an iPhone or iPad running iOS 16.4 or iPadOS 16.4.