Upon approval, the Pay Later option will appear when they select Apple Pay to pay online or in apps on their iPhones or iPads.
Tech giant Apple (NASDAQ: AAPL) has announced its Pay Later service, which allows users to split their purchases into four payments. The company introduced the service in the US with no additional interest or fees. Users of the Apple Pay Later service will be able to split their payments into four over a six-week period. After tech company Announced The New Service On March 28, financial firm Affirm (NASDAQ: AFRM), which also offers the same service, closed down 7%.
According to the announcement, users of the Apple Pay Later service can use Apple Wallet to easily track, manage and pay off their loans. While the loans range from $50 to $1,000, interested individuals can use them online or for in-app purchases on iPhone and iPad. However, the loan is only compatible with merchants that accept Apple Pay. Apple said it would start by inviting select users to preview the Pay Later feature before rolling out access to eligible users in the coming months.
Apple Pay and Apple Wallet vice president Jennifer Bailey said the new feature is a way to give people flexible payments. Noting that there is no “one-size-fits-all approach” to managing finances, she continued:
“Apple Pay Later was designed with the financial health of our users in mind, so it has no fees or interest, and can be used and managed within Wallet, making it easy for consumers to make informed and responsible lending decisions.”
apple pay later
To use the Apple Pay Later feature, users can apply for loans in Wallet. After entering the desired amount to borrow, they will also agree to the terms before application processing begins. Upon approval, the Pay Later option will appear when they select Apple Pay to pay online or in apps on their iPhones or iPads. At the same time, users can request loans in the checkout flow when making purchases, as long as the service is already set up.
The fact that the feature is integrated into Apple Wallet makes it easy to see pending payments. The amount due in the next 30 days is also visible on the platform. Apple has also designed a feature to send reminders to users before payment due dates.
Apple has ensured privacy and security at its peak for all users of its Pay Later service. The company said purchases with the new feature are authenticated via Touch ID, Face ID, or passcode. At the same time, the transaction and loan history is protected and is not disclosed or sold to third parties for advertising or marketing purposes.
The news barely affected AAPL as shares of the company rose 0.03% to $157.70.
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Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
