Apple announced a new free funding feature in Apple Wallet that allows you to pay for purchases over time for free.
As inflation continues to affect households, ‘buy now and pay later’ services are becoming a popular payment option, with Apple’s entry likely to be a major player.
Apple Pay Later will be released with the expected iOS 16 release in September 2022.
Short-term installment loans, known as “buy now and pay later” services, provide consumers with an easy way to pay off their purchases over time, usually with no fees or interest. At this week’s World Developers Conference, Apple announced Apple Pay Later, its buy now and pay later product, which will be officially launched with the release of the new iOS 16 for iPhone in September. Apple Pay Later, a new feature in Apple Wallet, lets you pay for certain goods and services in four free installments over six weeks.
Apple Wallet is a digital wallet app for iPhone that offers three main services: Apple Pay, Apple Card, and Apple Cash. With Apple Pay, you can store your debit and credit cards and make purchases online or business. Apple Card is a credit account issued by MasterCard and Goldman Sachs, used as a standard digital credit card. Apple Cash enables peer-to-peer payments.
Apple’s participation in free funding comes at a time when many retailers accept payments from BNPL apps like Affirm, Klarna or Afterpay. Most of these apps offer similar short-term interest-free payment plans, while some offer longer installment plans with variable interest rates.
We’ll share everything you need to know about Apple Pay later in this article, including how it works, where it’s accepted, and when it’s available. Apple has unveiled Pay Later and iOS 16 along with new versions of the MacBook and iPad. Everything Apple announced at WWDC.
How does Apple Pay Later work?
With Apple Pay Later, you can split the cost of your purchase into 4 equal parts over 6 weeks. The first payment is due at the time of purchase and the remaining payments are due every two weeks.
When Apple Pay Later launches, you will have two options: pay in full at checkout and pay later. Selecting the last option brings up a payment table showing the four payment amounts and due dates.
According to Corey Fugman, senior director of Wallet and Apple Pay, who talked about Wallet in a WWDC headline, Apple Pay could later be used in “anywhere, in any app or online where Apple Pay is accepted,” so the service may not be available. indicates that there is If purchased from a physical store.
Stores and merchants don’t need to make any changes to accept payments with Apple Pay later. Transactions are made as before. The only difference is how the arrears are paid.
MasterCard Installments, a credit card company’s BNPL service, stores merchant payments for Apple Pay Later. Apple and its banking partner Goldman Sachs started planning Apple Pay in late July, according to Bloomberg.
When will I be able to use Apple Pay on my iPhone in the future?
Apple Pay will later be included in iOS 16, Apple’s operating system update for iPhones. The iOS 16 beta is already available for developers with accounts. At the WWDC keynote, Apple revealed that the first public beta of iOS 16 will be released sometime in July.
Apple has traditionally introduced its latest operating system to the public at the same time as its latest phones, just like the iPhone 13 and iOS 15 last September. iPhone 14 is expected to launch in September this year, and iOS 16 is expected to arrive around the same time.
How is Apple Pay Later different from Apple Card monthly installments?
Apple Card Monthly Installment is an Apple program that allows you to finance the purchase of select Apple products when using your Apple Card credit card. The 0% annual percentage term for these purchases varies by product. Installment plans range from 6 months to 2 years.
Apple Pay Later is not limited to Apple products and does not require an Apple Card. Apple Pay Later allows you to finance purchases with a debit card of your choice from Apple as long as you have an Apple Wallet connection. And the interest-free installment period (6 weeks) of Apple Pay Later is significantly shorter than the Apple Card monthly installment plan.
What’s new in Apple Wallet for iPhone?
Another new Apple Wallet feature announced at WWDC is Apple Pay order tracking, which adds the ability for merchants to provide detailed receipts and shipping status for products purchased through Apple Wallet.
Apple also announced expanded support for Apple Wallet for driver’s licenses and ID cards. After Colorado and Arizona IDs, Apple Wallet will add support for 11 states in the near future.
This driver’s license can be used at designated TSA checkpoints. You can also share it with other apps that require identification, such as buying alcohol through Uber Eats.
Apple Wallet also adds support for key sharing for locations such as hotels, offices, or cars. The new feature allows users to share keys with friends or partners using email, text or other messaging apps.
Like Apple Pay Later, Apple’s ability to track payment requests, share driver’s licenses and keys will be made available to the public with the full release of iOS 16 expected in September 2022.
What other online services can I buy now and pay for later?
Some of the current online payment systems offer “buy now, pay later” short-term finance similar to what Apple Pay Later offers. PayPal’s Pay in 4 is very similar to Apple Pay Later, except that purchases are limited to between $300 and $1,500.
The BNPL Sezzle app also uses a 4 payment system for 6 weeks, but users can reschedule one payment up to 2 weeks later and defer other payments for an additional fee for free.
Other BNPL apps, such as Affirm and Klarna, offer short-term interest-free amortization plans or long-term amortization plans that add a variable interest rate.
To learn more about WWDC coverage, learn about all the new features announced for the upcoming macOS Ventura, new fitness and workout features on Apple Watch, and Apple Maps.
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