Apple Pay Later Financing Feature Continues Rolling Out to iPhone Users

[MacRumors]

A pre-release version of Apple Pay Later continues to roll out to randomly selected iPhone users, as noted by tech enthusiast Will Sigmon. Built into the Wallet app, the "buy now, pay later" feature lets qualifying customers split a purchase made with Apple Pay into four equal payments over six weeks, with no interest or fees.

iPhone users will see an "Early Access" banner for Apple Pay Later in the Wallet app if they are selected, and a notice will be sent to their Apple ID email. There doesn't appear to be any way to force an invite, but those who wish to try Apple Pay Later must be a U.S. resident, 18 or older, and update their iPhone to iOS 16.4 or later.

Apple Pay Later early access began in late March, and Apple said it plans to offer the feature to all eligible users "in the coming months."

iPhone users can apply for a $50 to $1,000 loan in the Wallet app with no impact to their credit, according to Apple. After entering the amount they would like to borrow and agreeing to the Apple Pay Later terms, a soft credit check will be initiated. Once a user is approved, Apple Pay Later will be available as an option when using Apple Pay.

In the Wallet app, users can view, track, and manage loans, with upcoming payments shown on a calendar and payment reminders sent via the Wallet app and email. Users must set up a debit card as a loan repayment method, with credit cards not accepted.

Apple Pay Later credit assessment and lending is handled by Apple Financing LLC, a subsidiary of Apple. The service is based on the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement it. Apple published a series of support documents with additional information.

Apple has not said if or when the feature will launch in other countries.

https://twitter.com/x/status/1652002906239901696

Article Link: Apple Pay Later Financing Feature Continues Rolling Out to iPhone Users

 

[Apple$]

I'm hoping this feature could be expanded internationally!

 

[AbSoluTc]

Not sure how I feel about this with others like Klarna, Affirm and the like. It's a great feature but some of the stuff I have read about what's being financed (groceries) is not good. Features like this should be used sparingly and should not be relied on regularly. Just like credit cards, treat this with respect and not like free money. Otherwise you can find yourself in hot water.

It's helpful to split a large purchase over time as long as you budget for it and have the money.

 

[macsplusmacs]

I will try it out on AR Goggles.

LOL!

I guess not, $1000 max?

 

[Attirex]

If you have to split up a $50 to 1k purchase, you're doing many things wrong.

 

[mthomas184]

If you have to split up a $50 to 1k purchase, you're doing many things wrong.

Oh teach us the financial ways oh rich one.

 

[dannyyankou]

The only people I see using this is people who already have bad credit, because otherwise they would've just signed up for a credit card that actually rewards you. This will just push those people deeper in debt.

Edit: I see they do a credit check for this too. I imagine it would be as stringent as the check for Apple Card though.

 

[neuropsychguy]

If you have to split up a $50 to 1k purchase, you're doing many things wrong.

Maybe but some of us might split up a larger purchase (>$500) to get a little more interest on the money. For $1000 at 4.2% interest, paying over 6 weeks might net 2 - 3 dollars. That might not be worth it for many people but it's something.

However, it's not nearly as good as using a card that offers even 1% cash back ($10 on $1000 purchase). So if someone can get even a basic rewards credit card, it's better just to use that or save up until they have the money up front.

 

[KaliYoni]

Not sure how I feel about this with others like Klarna, Affirm and the like.

The only people I see using this is people who already have bad credit

So if someone can get even a basic rewards credit card

Here’s a story from Bloomberg about how these buy-now-pay-later services are being used by many people, for anybody interested (while taking loans to pay for basic living expenses is never good, at least BNPL can be less exploitative than payday lenders):

“US consumers are increasingly using such installment loans to pay for everyday items like groceries, highlighting the financial pain wrought by the worst inflation outbreak in four decades. Grocery prices jumped 8.4% in the year through March, according to the Bureau of Labor Statistics. Almost half of Americans have used BNPL apps, and of those, about 1 in 5 rely on such apps to buy groceries, according to a recent survey from LendingTree Inc. Some 27% of users use the loans as a bridge to their next paycheck.

The BNPL business surged during the pandemic—five of the main lenders in the US originated loans worth $24.2 billion in 2021, up from $2 billion in 2019, according to the Consumer Financial Protection Bureau (CFPB). The model typically allows buyers to spread payments out evenly without accruing interest, making it an attractive alternative to credit cards, with US interest rates at their highest level since 2007. More players are getting in, with Apple Inc. introducing Apple Pay Later last month. “

Americans Go Deeper Into Debt as They Use Buy Now, Pay Later Apps for Groceries

With inflation squeezing budgets, more consumers are turning to instant credit apps to make ends meet.

www.bloomberg.com

 

[Attirex]

Oh teach us the financial ways oh rich one.

Here you go:

1. If you can't pay cash for it, don't buy it. (excepting large purchases like houses, cars, and HVAC systems, office buildings, etc)
2. Or more simply, just don't buy it.

After I got into CC debt years ago, I live by this rule and haven't had a CC balance since the mid-Nineties.

 

[CarAnalogy]

Looks like confetti is Apple’s theme of the year for 2023. I’m assuming that’s what those little bacteria looking things are supposed to be.

 

[alexandr]

First! Lol
I'm hoping this feature could be expanded internationally!

Yup, just as soon as Apple Card is expanded

 

[sw1tcher]

Maybe but some of us might split up a larger purchase (>$500) to get a little more interest on the money. For $1000 at 4.2% interest, paying over 6 weeks might net 2 - 3 dollars. That might not be worth it for many people but it's something.

Makes no sense when you can use a credit card that gives 1.5% or 2% cash back, of which there are many. Almost every card gives at least 1.5% cash back. On a $1,000 purchase , that's $15 or $20 back.

You can then maximize the cash back dollars if you're able to redeem them for things like discounted gift cards or sky miles.

 

[Aston441]

Great incentive to pay idea: if you don't they lock your phone!

Apple should hire me.

 

[neuropsychguy]

Makes no sense when you can use a credit card that gives 1.5% or 2% cash back, of which there are many. Almost every card gives at least 1.5% cash back. On a $1,000 purchase , that's $15 or $20 back.

You can then maximize the cash back dollars if you're able to redeem them for things like discounted gift cards or sky miles.

Yeah, a minute after posting I edited my comment to include this but you only saw my pre-edited comment.

 

[nocsi]

BNPL is like crack for gen z.

 

[erk_0]

I actually find services like this (Klarna) come in pretty handy when it comes to monthly budgeting on certain expenses. When timed right, I can split a purchase across two months avoiding budget overages etc.

 

[Justin Cymbal]

I got a notification earlier this morning saying that I was invited to sign up for this. I’m not sure what parameters Apple is using to determine who they’d like to send these early invitations to (Apple might be sending invitations to longtime customers) so I went into my purchase history for my Apple ID to view the year that I opened up my Apple ID and it says that my first purchase made using my account was in 2005:

I never like to sign up for anything right away so I’m going to wait another 2-3 weeks before I sign up for this new service in case there are any issues with signing up because I’m sure a lot of people will be signing up for this over the next few days

Here are a few screenshots that I took of the sign-up process for this new pay later feature:

 

[Prof.]

BNPL is like crack for gen z.

Gen Z is racking up credit card debt faster than any generation before it.

 

[DoctorApple]

I used Apple Pay today and noticed pay later tab appearing next to a now new "pay full" tab. But I didn't receive any emails or notifications. There's an "Early Access" banner on top of my Wallet app main screen.

 

[svish]

Good to see the rollout happening. Would have been very good if the feature expands globally.

 

[Skyscraperfan]

If you can't afford something now, just don't buy it! It does not make sense to spend money you have not even earned yet.

 

[ProfessionalFan]

I got a notification earlier this morning saying that I was invited to sign up for this. I’m not sure what parameters Apple is using to determine who they’d like to send these early invitations to (Apple might be sending invitations to longtime customers) so I went into my purchase history for my Apple ID to view the year that I opened up my Apple ID and it says that my first purchase made using my account was in 2005:

Just for some extra info on this, my purchase history starts in 2009 and no invite yet. It could be completely random.

 

[Victor Mortimer]

I got the invite a while back. I don't understand the point of it. I went through part of the process, and then it asked me to pick a number between 50 and 1000, which made no sense to me because I wasn't buying anything right then.

Canceled out.

 

[Dionte]

Originally I thought that it would be charged to your Apple Card and you would just make the payment there. It sounds like this is a completely different loan provided by apple.