Apple is finally bringing Apple Pay Later to its customers, letting them make payments for purchases in installments. The service is launching for U.S. residents today, sending out invites to select users before rolling it out widely. The company initially announced Apple Pay Later in September 2022, when it intended to launch it with iOS 16. However, due to technical issues, the launch was delayed.

With Apple Pay Later, customers can pay four installments spread over six weeks when making purchases, that too, without any interest or extra fees. They can also track and manage their transactions and Apple Pay Later loans from the Apple Wallet app. These loans can be worth $50 to $1,000 and can be used to make online or in-app purchases on iPad and iPhone merchants that support Apple Pay. Additionally, as Apple Pay Later is enabled using the Mastercard Installments program, these merchants are not required to do anything to implement Pay Later for their customers. Also, Goldman Sachs issues Mastercard payment credentials that are needed to make purchases using the new service.


The company added that it will invite select certain individuals to try out a “prerelease version” of the Apple Pay Later facility from today, however, it plans to make it available for more people in the future. Apple’s vice president of Apple Pay and Apple Wallet, Jennifer Bailey, explained the new service


Apple users who want to avail of the Apple Pay Later service can apply for loans from the Apple Wallet app. While Apple mentions this will be done with “no impact” on the users’ credit, it does mention that their payment history might be shared with credit bureaus. Next, they must enter the amount of the loan they wish to get and agree to the terms of service. Lastly, a credit pull will be conducted to check the debtor’s financial position and ensure the loan can be repaid. Upon approval, customers will be given a Pay Later option in Apple Pay when they make purchases from their Apple devices. Furthermore, the company adds that once a user has set up Apple Pay Later, they can simply get a loan in the checkout flow when they make a purchase.

The company blog post also highlights:


To further its users’ trust, Apple claims that the service prioritizes user privacy and security. Any purchases made through Apple Pay Later are authenticated with the help of Face ID, passcodes, and Touch ID, and their transactions are not disclosed to third parties, although, Apple plans to share information about Apple Pay Later loans with the U.S. credit bureaus from fall 2023.