Apple now sanctions loans to iPhone users under new Apple Pay Later service

Apple introduced its Pay Later service in the US, a year after it announced the new Buy Now, Pay Later (BNPL) service at the WWDC 2022. The Apple Pay Later service allows users to split purchases into four payments with zero interest and no fees. Although not launched in India, the Apple Pay Later service is similar to Flipkart Pay Later, Simpl, Zest Money, and Amazon Pay Later among others.

“Users can easily track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet,” the tech giant said in a blog post on Tuesday.

Available inside the Apple Wallet app, the Apple Pay Later service allows users to apply for loans of $50 to $1,000 (roughly Rs 4,120 to Rs 82,320), which they can use for online and in-app purchases made on their iPhone or iPad at stores that support Apple Pay.

The iPhone maker is inviting select users to access a pre-release version of the Pay Later service, with plans to provide it to all eligible users in the coming months. This essentially means not everyone in the US will be able to access the Apple Pay Later service. It was initially supposed to arrive with iOS 16, but, as reported by Bloomberg’s Mark Gurman, it got delayed due to “technical and engineering issues.”

“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,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said.

The transaction and loan information of users using Pay Later will never be shared or sold to third parties for marketing or advertising purposes. Also, the purchases are authenticated using Face ID, Touch ID, or a passcode.

“Apple Pay Later is enabled through the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers,” the company said.

— Written with inputs from IANS