Apple Pay Later is Apple's take on a Buy Now, Pay Later service. It's expected to be available as part of the company's Apple Pay contactless payment platform. Apple Pay Later allows you to choose, at checkout, to split your purchase into four equal installments, with one payment made every six weeks. But, unlike buying with a credit card, no interest or fees are charged for using Apple Pay Later. It's just a benefit of using Apple Pay for your purchases.
When Will Apple Pay Later Launch?
The release date for Apple Pay Later is unknown. The offering was announced in June 2022 at the company's Worldwide Developers Conference (WWDC) and was expected to launch in Fall 2022. That didn't happen, and the company hasn't confirmed a new date, but speculation is that Apple Pay Later will launch in Spring 2023.
At launch, the service will likely be available only in the United States, although maybe not in all states; local laws and regulations will determine that—with other countries to follow later.
Lifewire’s Release Date Estimate
While we don’t have any inside info, our bet is that Apple Pay Later will go live at or before WWDC 2023 in June.
How Do You Use Apple Pay Later?
Using Apple Pay Later is similar to using Apple Pay. The feature is integrated into the pre-installed Wallet app and, where available, becomes just another option on the Apple Pay payment screen.
You’ll need to have Apple Pay set up on your device, with at least one payment card added to it. Technically, when you use Apple Pay Later, Apple is giving you a loan for the last three payments. So, when you’re checking out, the company will run a behind-the-scenes credit check to determine if you qualify for the loan needed to buy your item.
If you do, the Apple Pay screen will offer you the option to Pay in Full or Pay Later. If you choose to Pay Later, you'll see the amount and date of each payment, as well as a confirmation of the total price, with no fees or interest. You can choose the option and authenticate the purchase just like with any other Apple Pay purchase.
Do You Have to use Apple Card with Apple Pay Later?
You don't have to use Apple Card, the company's credit card, with Apple Pay Later. You can use any supported credit or debit card that you have set up in Apple Pay. If you have more than one card, you can choose during checkout which card to use and where the payments will go.
What Are the Fees and Interest for Apple Pay Later?
Apple does not charge any fees or interest on Apple Pay Later purchases.
What Are the Purchase Limits for Apple Pay Later?
While not yet confirmed, rumor has it that Apple Pay Later will be limited to purchases of up to US$1,000. However, the maximum amount each person can finance this way will be determined by their specific credit score and other factors.
Other Apple Pay Later Details
A few other interesting Apple Pay Later notes:
- Apple Play Later will be compatible with any device that supports Apple Pay and iOS 16 or higher (or iPadOS 16, macOS Ventura, etc.).
- Apple did not partner with a third-party bank or credit card company for Apple Pay Later. Instead, the tech giant has set up its own bank-like company, Apple Financing LLC, to loan and collect the money.
- Apple Pay Later uses Mastercard for merchant services.
- Any merchant that already supports Apple Pay will be able to accept Apple Pay Later without making any changes to their technology or payment terminals.