Apple introduced Apple Pay Later in the U.S

Apple Pay Later, the forthcoming “buy now, pay later” service, has been released alongside the iOS 16.4 update, offering select users in the United States a preview of its functionality.

Currently, Apple Pay Later can be used on devices with iOS 16.4 or iPadOS 16.4 installed. Users can access the Wallet feature through their Apple accounts and utilize Apple Pay Later for online purchases or in-app transactions.

In terms of operation, Apple Pay Later functions similarly to existing “buy now, pay later” services. It evaluates users’ spending habits to determine a pre-approved credit limit, accommodating online or in-app purchase payments ranging from $50 to $1,000. Users are required to link a bank or cash card (credit cards are not allowed) as the default repayment method.

Apple Pay Later is managed by Apple Financing, a subsidiary of Apple, in collaboration with Mastercard and Goldman Sachs. This arrangement allows existing Apple Pay users to utilize Apple Pay Later for online or in-app transactions in the future.

Users can view their repayment status for all transactions within the next 30 days through the Wallet feature, enabling them to plan their repayment strategies. Apple will also send reminders via the Wallet and email before the repayment deadline.

Moreover, Apple emphasizes that Apple Pay Later ensures user privacy and security. Authentication is conducted through passwords, Face ID, or Touch ID, and transaction details and loan records will not be used for marketing or advertising purposes.