Apple has officially entered the “buy now, pay later” game. On Tuesday, the tech giant launched its Apple Pay Later service that will allow users to split the cost of their purchases into four payments across six weeks.
The service, which was announced in the summer of 2022, will apply to online and in-app purchases that customers make using their iPhones or iPads. The minimum purchase is set to $50, while the maximum loan Apple Pay Later offers is $1,000. Any store or service that accepts Apple Pay will also offer a “buy now, pay later” service.
At the moment, Apple Pay Later won’t be available to all iPhone and iPad users. Instead, Apple will offer the service to randomly select users in the U.S., who will gain access to a pre-release version of Apple Pay Later through their Apple Wallet app. All other eligible users will get access in the “coming months.”
Apple won’t pay charge any interest or fees for the use of Apple Pay Later. However, the company notes that the “user’s bank may charge them fees if their debit card account contains insufficient funds to make loan repayments.”
“There’s no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later,” said Jennifer Bailey, Vice President of Apple Pay and Apple Wallet, in a statement.
With Apple Pay Later, Apple will expand its services business while also tapping into a growing market. The Buy Now, Pay Later industry was worth $6.13 billion in the U.S. in 2022, with estimated 79 million users.