Apple releases BNPL offering ‘Pay Later’ in the US

Ellie Duncan
29 Mar 2023

Technology giant Apple has launched its long-awaited buy now, pay later offering (BNPL), Apple Pay Later, in the US.

Apple Pay Later allows users to split purchases into four payments, spread over six weeks, with no interest or fees applied.

Consumers can apply for Apple Pay Later loans of between $50 up to $1,000, within the Apple wallet, with no impact to their credit.

The loans can then be used to make online and in-app purchases on iPhone and iPad with merchants that accept Apple Pay.

Selected users are being invited by Apple to access a pre-release version of Apple Pay Later, effective 28 March, with plans to offer it to all eligible users in the coming months.

During the application process, Apple will conduct “a soft credit pull” to check that the user is in a “good” financial position before taking on the loan.

Once approved, users will see the ‘Pay Later’ option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase.

Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said that many people are looking for flexible payment options.

“Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions,” she added.

Within ‘Wallet’, consumers will see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days.

Before a payment is due, Apple said that users of Pay Later will receive notifications via Wallet and email, and will be asked to link a debit card from Wallet as their loan repayment method.

Apple Pay Later is being offered by Apple Financing, which is a credit assessment and lending subsidiary of Apple.

Apple Financing plans to report Apple Pay Later loans to US credit bureaus from Autumn this year.