Apple finally launches Pay Later in the US

By Amelia Isaacs on Wednesday 29 March 2023

Alternative LendingDigital Banking

The tech giant is continuing its push into financial services with its BNPL product.

Apple finally launches Pay Later in the US
Image source: Apple.

Nine months after announcing it would be entering the ‘buy now, pay later’ (BNPL) space, Apple’s Pay Later baby has finally arrived.

Now live in the US, Apple’s product set to rival the likes of Klarna and Affirm will give users the option to split their purchases into four equal payments across six weeks, with no interest and no fees.

Apple users will be able to track, manage and repay their loans through their Apple Wallets on their iPhones and iPads, and can apply for loans of $50 to $1,000, which can be used for online and in-app purchases at merchants that accept Apple Pay.

“There’s no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later,” Apple’s vice president of Apple Pay and Apple Wallet Jennifer Bailey said.

“Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”

According to Apple, randomly selected users will have access to a prerelease version of the product, and there are plans to offer it to all eligible users “in the coming months”.

Apple will check eligibility with a soft credit pull and, starting this autumn, its subsidiary Apple Financing plans to report Pay Later loans to US credit bureaus so they are reflected in users’ financial profiles.

Built into Apple’s Wallet feature, users will be able to view, track and manage their loans in one place, with the option to see all their payments through a calendar view showing all their existing loans and the total amount remaining.

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.