In today’s fast-paced, tech-forward world, it’s no surprise that Apple is constantly coming up with new products to delight it’s loyal fanbase. What about the financial technology and payments space?
Apple’s answer to this is Apple Pay Later, aka Apple’s Buy Now Pay Later program.
The aim of this program is to compete with the likes of Klarna, Affirm, and Afterpay. Well Apple Pay Later will allow financing option that allows consumers to enjoy the best of Apple’s products while spreading out the cost over time.
Let’s dive into everything you need to know about the Apply Pay Later program.
How does Apple’s Buy Now Pay Later Work?
Like other BNPL options Apple Pay Later will work in a similar way.
Apple customers can apply for from $50 – $1000. The purchase can be made online or in-store and Apply Pay Later will work at any retailer that accepts Apple Pay.
Purchases will be split into 4 easy payments over the course of 6 weeks. Much like the way other BNPL options work.
Benefits of Using Apple’s Buy Now Pay Later Option?
Apple Pay Later is integrated directly into the Wallet for iOS users. This provides a smooth platform for users to oversee, monitor and manage all their Apple Pay Later loans.
In their Wallet, Apple users have the advantage of viewing the entire sum due across all their existing loans, as well as the total due in the subsequent 30-day period.
Additionally, Wallet offers a calendar view for upcoming payments, facilitating users in keeping track of and scheduling their repayments. Users will receive timely notifications via Wallet and email before a payment is due, enabling them to prepare appropriately. To handle loan repayments, users are requested to connect a debit card from their Wallet. To discourage users from accumulating further debt for loan repayment, credit cards will not be accepted.
How to Apply for Apple’s Pay Later?
To get started with Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit.
They will then be prompted to enter the amount they would like to borrow and agree to the Apple Pay Later terms. A soft credit pull will be done during the application process to help ensure the user is in a good financial position before taking on the loan.
After a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase. Once Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase.
Will Apple Pay Later report to Credit Bureaus?
Apple Pay Later is a service provided by Apple Financing LLC, a part of the Apple Inc. family, tasked with conducting credit evaluations and issuing loans.
It is currently not clear to DimeScout how Apple Financing determines soft credit eligilbiy for consumers.
Apple Financing does intend to report Apple Pay Later loans to U.S. credit bureaus. So, yes they do report.
This will means that these loans will be included in users’ comprehensive credit report. So don’t miss out on payments if you use Apple Pay Later.
Apple Pay Later Partners
Apple has partnered with Mastercard and Goldman Sachs to make Apple Pay Later work.
Apple Pay Later operates via the Mastercard Installments program. Consequently, vendors accepting Apple Pay aren’t required to make any adjustments to facilitate Apple Pay Later for their clientele.
When Apple Pay is accepted by a merchant, Apple Pay Later becomes a checkout option for their customers during online and in-app purchases on iPhone and iPad. The Mastercard payment credential, which is utilized to carry out Apple Pay Later purchases, is provided by Goldman Sachs.
Apple Pay Later Security
Apple Pay Later has been developed with a foundational emphasis on privacy and security. Transactions made using Apple Pay Later are authorized using Face ID, Touch ID, or a passcode.
Importantly, the user’s transaction details and loan history are strictly confidential; these are neither shared nor sold to outside parties for marketing or advertising purposes.
This is an important point since other BNPL companies such as Affirm, Klarna, and Afterpay share purchase data with retailers and merchants. It’s part of the reason they loan you the money.
Apple on the other hand is more focused on user privacy, which is nice to see.
Should I Use Apple Pay Later
The convenience and flexibility of Apple Pay Later will be really hard to beat. It is integrated well into existing Apple products and services.
Ultimately, the decision to use Apple Pay Later should be based on your individual financial circumstances and what you can afford. The team here at DimeScout always encourages you to think before making any purchase with a BNPL service.
Overall though we are happy to see Apple competing in this space and offering enhanced privacy and another option for consumers.