Apple introduces 'pay later' service with no interest or fees

In what is being called Apple's venture into financial services, the company is offering to allow consumers to split up purchases into payments.
Posted at 7:51 PM, Mar 28, 2023

Apple has introduced a new purchase financing program it is calling "Apple Pay Later," which has been described as the tech giant's initial step into the financial services world. 

Apple customers will have the option to split purchases into payments, with no fees or interest, the company says. 

The program will allow purchases to be portioned out into four payments spread out over six weeks. 

Using the iPhone's wallet app, customers can "borrow" from $50 to $1,000 using the "Apple Pay Later" scheme. 

Users will have to make repayments using a debit card, and credit cards will not be allowed. 

The program has been introduced in the United States and will allow users to track and manage the micro installment loans on their phone. 

On Tuesday Apple said it would invite "select users" to gain access to a "prerelease version" of the program.

All "eligible users" will be offered the plan in the coming months, the company says.  

The program will allow users to "apply for a loan" within the Wallet app, and the company says there will be no impact to user's credit report. 

After the application is approved, users will then see an "Pay Later" selection when they see an option to pay online or in apps on Apple devices. 

A unit of Apple called Apple Financing LLC will handle credit assessments and lending through the program. 

The company will connect to merchants though the Mastercard Inc. network. 

Industry analysts believe the move by Apple could pull customers away from services like Affirm, Afterpay and Klarna, or slow the growth of new customers on those platforms.