Apple’s “buy now, pay later” service is now available in the US. This service lets users split purchases into four equal payments.
Apple Pay Later was first announced in June of last year. Now, some users can use a pre-release version of the service, and the rest of the users will be able to use it in the coming months.
Users can apply for loans between $50 and $1000, which they can then use to buy things online or in apps on their iPhone or iPad from stores that accept Apple Pay. During the application process, a soft credit pull is done, which doesn’t hurt the user’s credit.
The loan is paid back in four equal payments over the course of six weeks, with no interest or fees. In Apple Wallet, users can keep track of, manage, and pay back their Apple Pay Later loans all in one place.
Apple is working on the service with Goldman Sachs and Mastercard, but it has also set up Apple Financing, a company that it owns 100% of, to offer loans directly.
Apple is also checking customers’ credit for the service. It bought the UK credit bureau Credit Kudos earlier this year. Credit Kudos uses open banking technology to give very accurate credit scores.
By keeping the process in-house, Apple will earn interchange fees from transactions and won’t have to share customer information with third parties.
