Apple Pay Later service goes live
Apple launched Apple Pay Later on Tuesday, giving customers the option to pay for four purchases over the course of six weeks.
On the news, Affirm, which also provides software for buy now, pay later, closed down 7%.
In a press release, the company said that users of Apple Pay Later will be able to manage, track, and pay back their loans in their Apple Wallet. People can apply for Apple Pay Later credits of somewhere in the range of $50 and $1,000 and use them for in-application and online buys made through vendors that acknowledge Apple Pay. There are no fees or interest on payments.
The Mastercard Installments program enables Apple Pay Later, so dealers that as of now acknowledge Apple Pay won’t have to roll out any improvements to carry out the product for their clients.
Clients can apply for a loan within the Apple Wallet application without it influencing their FICO rating, Apple said. According to the release, a soft credit pull will be performed after they select the amount they wish to withdraw to ensure that they are in “a good financial position” to take out a loan.
On Tuesday, Apple will give a select group of people access to a prerelease version of Apple Pay Later. In the coming months, the company plans to make access available to all users who are eligible.
When using Apple Pay to pay for purchases made online or through iOS apps for iPhones and iPads, approved users will be able to select “Pay Later.” Additionally, they will be able to apply for a loan right at the checkout. Face ID, Touch ID, or a passcode will be used to authenticate software-based purchases, according to Apple.
Apple Wallet, according to the company, lets users see the total amount due in the next 30 days as well as the amount due on existing loans. Users will be required to link a debit card in order to pay back their loans. It won’t take credit cards.
“More transparent and flexible payment options that can displace credit cards are good for consumers – especially when they have no late or hidden fees,” an Affirm spokesperson said.