Apple has finally launched its "buy now, pay later" service, called Apple Pay Later, after a significant delay. The new service allows users to split purchases into four payments over six weeks without any interest or fees, and it can be accessed through the iPhone's Wallet app. Users can borrow from $50 to $1,000 from Apple.
The service was first announced in June 2020 as part of Apple's expansion into financial services. A "pre-release" version of the service is now available for randomly selected users, with plans to introduce it to all customers in the coming months. Unlike other providers in the market, Apple will fund the loans through its subsidiary, Apple Financing LLC, and will also handle its own credit checks and underlying technologies.
The delays in launching the service were partly due to this arrangement. The loans will be reported to US credit agencies from the fall. Apple partnered with Mastercard's installments program and Goldman Sachs Group as the payment credential issuer. The new service requires iOS 16.4, which was released on Monday. Alongside the new service, Apple also introduced Apple Music Classical, a new classical music streaming service that works with Apple Music.