After suffering multiple delaysApple Pay Later finally arrives as it begins rolling out to randomly selected users in the United States.
Originally, the service was supposed to launch along with iOS 16 in September 2022, but developers ran into one variety of “technical setbacks”. Apple pays afterwards (opens in new tab) allows people to apply for loans from $50 to $1,000 to buy whatever they want without paying the full price up front. From there, users pay off that amount in four separate payments over six weeks, with no interest or additional fees added. $1,000 is a decent chunk of change, but it’s not a guarantee. Eligibility depends on your credit score; a history with low numbers qualifies for smaller loans.
The feature will find its home in the Apple Wallet (opens in new tab) which comes with a detailed calendar that notifies you of upcoming payments. If you find it difficult to pay, Apple will work with you to come up with a new plan. And if you still can’t pay the bill, you won’t qualify for future loans. Customers must link a debit or debit card to their account in order to use the funds. Credit cards cannot be used, as Apple notes in the press release, to “prevent users from taking on more debt to pay back loans.”
Basic necessities
Before signing up, you need to meet some basic requirements. Currently the feature is not available in Hawaii, Nevada, New Mexico, North Carolina and Wisconsin plus all US territories. Currently, Apple Pay Later is available in 45 states. People residing in Hawaii, Nevada, New Mexico, North Carolina, Wisconsin, or any of the US territories cannot access the feature at this time. You must be at least 18 years old (19 if you live in Alabama) and live in a supported state with a valid physical address.
Hardware-wise, all you need is an iPhone or iPad updated to iOS 16.4 and iPadOS 16.4, respectively, with two-factor authentication enabled.
Once everything is cleared out, you can apply through Apple Wallet via an option at the top. Keep in mind that the company will perform a “soft credit pull” to see if you are in a “good financial position” to borrow the money. Those who are rejected will receive an email from Apple explaining why you were not accepted.
Money rules
There are, however, some rules for the use of the loan.
The money appears on a purchase’s checkout page under the Pay later option, where you have 30 days to use it all. After that time, you will need to sign in all over again. Whatever you get, it must be used for one big order, because leftover money cannot be reused elsewhere. In addition, the loan is only accepted by online retailers and apps that support Apple Pay, but you are not forced to buy Apple technology alone. It works for multiple products purchased from one seller. Apple cannot see the details of that transaction (your purchase of an Xbox Series X and Sonic Colors Ultimate on Target.com will not be reviewed).
Pay Later does not currently support payments in physical stores.
Apple Pay Later customers don’t pay any fees, but Apple will make some money from this program by reducing the fees that staggered payment provider, Mastercard, charges retailers.
The company is pretty committed to maxing out the loan to $1,000. For more expensive purchases, say a MacBook Pro, Apple recommends something like the Apple card (opens in new tab) to have payments over months instead of weeks. There are plans to expand support to all eligible US customers later this fall, when Apple Financing, LLC begins reporting to US credit bureaus. Unfortunately, there are currently no plans for a global launch.
Hopefully there will be. Until then, if you’re in the market for a new device, check out TechRadar’s list of the best iPhone models for 2023.
