Apple Pay Later Will Let You Pay for Purchases Through an Installment Plan With No Interest or Fees

Later this fall, Apple Pay Later will let customers in the United States pay for online and in-app purchases through a six-week installment plan with no interest or fees.

apple pay later
Previewed at WWDC, Apple Pay Later will let customers split a purchase into four equal payments paid over the course of six weeks. Apple Pay Later will include zero interest and no fees and will be available "everywhere Apple Pay is accepted," according to Apple.

apple pay later wallet
Inside the Wallet app, users will see a new overview of all of their upcoming payments and how much they owe and can set a personal budget. Apple says that Apple Pay Later will only be available to qualifying applicants, but no further details have been shared.

The development of Apple Pay Later was first reported by Bloomberg in July 2021. Apple Pay Later is one of several new features coming to the Wallet app with iOS 16, including a built-in parcel and order tracking.

Top Rated Comments

Unggoy Murderer Avatar
20 months ago

Payday loans, now available right there on your phone.
It's not a payday loan, it's an interest-free payment plan.
Score: 9 Votes (Like | Disagree)
kyjaotkb Avatar
20 months ago

I find the 3 x fortnightly payment thing a bit strange. The use case for this would normally be to spread the cost across salary payments which, in the UK, normally happen monthly. I appreciate this is US only, so perhaps the payment frequency is different in the US?
US workers generally get paid fortnightly, and this is a US-only feature for now.
Here in the UK it is common to have a credit card where, if you pay back your debt monthly with direct debit, you end up having ~1.5 month interest-free (I have that with my Amex).
PS autocorrect wrote that US workers get laid fortnightly, does Apple know something I don’t?
Score: 8 Votes (Like | Disagree)
Coochie Boogs Avatar
20 months ago
Apple moving closer and closer to providing more of the “FinTech” services. What are the chances they become an online bank?
Score: 6 Votes (Like | Disagree)
Juicy Box Avatar
20 months ago

Why not just wait to buy until you can pay?

Well that would be the fiscally responsible thing to do... but so many people lack the discipline to do that.

(those with such discipline, as well as not spending everything they make, typically don't use buy-now-pay-later financing...)
Paying cash when you can get an interest-free loan is not smart, financially speaking.

I can afford to buy anything that Apple currently sells in online store, but given the choice between paying all upfront, or paying over time, I would choose paying over time, every time, and I do.

Now, if there was a discount for cash, that would be a totally different story.
Score: 6 Votes (Like | Disagree)
BruiserB Avatar
20 months ago

For more info about Buy Now, Pay Later (BNPL), CNBC ('https://www.cnbc.com/2022/05/13/buy-now-pay-later-is-not-a-boom-its-a-bubble-harvard-fellow-says-.html') has some good articles. Search for "BNPL"- this is still a new 'product' in the US, "without much regulatory oversight, the BNPL market currently exists in “a legal gray space,” according to Lux."

The merchants / stores are able to ring up higher purchase totals; the banks loaning out the money are making their money through late fees, etc.
Good point...I was thinking about the money they make if the customer pays on time...the banks stand to make even more money on late fees, etc if the customer pays late. They only lose in a complete default which is probably relatively rare given the short terms and relatively low amounts of the funding.

Bleagh, now that it's clear what this product really is, it feels pretty unsavory for Apple to be getting involved with it.
Score: 6 Votes (Like | Disagree)
Unggoy Murderer Avatar
20 months ago
Really wish the additional Apple Pay features eventually trickle out internationally, feel like they're great features that I would definitely use.
Score: 5 Votes (Like | Disagree)

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