This is the main view for the Pay Later feature in Apple’s Wallet app for iPhone.
When users are approved for a loan, Apple specifies the payment schedule and amount before approval.
Users can then track the loan and scheduled payments through an in-app calendar.
With today’s limited launch of a new service called Apple Pay Later, Apple will now lend users money directly through the Wallet app on devices like the iPhone.
We first heard about the service in 2021 and it was officially announced at the company’s Worldwide Developers Conference in June 2022. However, there were several delays when iOS 16 rolled out last September.
Now Apple is “inviting select users to access a pre-release version of Apple Pay Later.” The service will roll out to everyone “in the coming months.”
Those who can use it now can apply for anywhere from $50 to $1,000 in credit — but they can only spend the borrowed money at merchants (online or otherwise) that accept Apple Pay.
Loan repayments are split into four payments and users have six weeks to repay the loans with no interest. Payments must be made with a debit card, Apple says.
When users initiate credit, Apple performs a gentle credit check before submitting an offer. A screen will appear on the user’s device outlining the payment plan. In addition, there is a screen in the wallet app where users can track their loan balance and future payments on a calendar.
Apple Pay Later builds on Apple’s existing relationship with Mastercard and Goldman Sachs; The service will be “enabled through the Mastercard Installment Program,” which Apple says will allow the service to work immediately with merchants who already accept Apple Pay. “Goldman Sachs is the issuer of the Mastercard proof of payment used to complete Apple Pay Later purchases,” Apple says.
However, Apple has formed a subsidiary to fund Apple Pay Later loans — something it hasn’t previously done with Apple Card or Apple Pay. The subsidiary will begin reporting loans to US credit bureaus in the fall.
With smartphone adoption slowing somewhat of late, Apple has spent several years branching out beyond profits based on hardware sales and within a broad range of services such as streaming entertainment, cloud backup, fitness, and to diversify financial productions.
Listing image from Apple