Apple has unveiled its highly-anticipated Apple Pay Later installment service, enabling users to split the cost of a purchase made via contactless payment over a specific period with no interest or fees. The service will allow US-based customers to split payments into four equal parts over six weeks and will be accessible wherever Apple Pay is accepted.
According to Jennifer Bailey, the VP of Apple Pay and Apple Wallet, the new feature aims to provide users with “the convenience of paying for an item” and prevent them from borrowing money for minor purchases from family or friends. With Apple Pay Later, customers can borrow between $50 and $1,000 from the Wallet app on their iPhones. Notably, the loan is not linked to a person’s credit history and will not affect it in the future.
Once approved, the loan obtained through Apple Pay Later can be used to pay for services and online or offline purchases and is supported wherever Apple Pay is available. The loan repayment is also managed through the Wallet app, where users can view the total amount of all outstanding loans.
The service is available through the Mastercard Installments program, and merchants do not need to take any extra steps to offer Apple Pay Later to their customers. If a store accepts Apple Pay, customers can use Apple Pay Later during the online and in-app checkout.
The Apple Pay Later service was first unveiled at WWDC 2022 but is only being introduced to a small group of users now. The company intends to make it available to all US customers in the coming months, with plans to expand to Europe shortly.
Source: 9to5mac
