Apple Inc. has launched its latest financial service, Apple Pay Later, on Tuesday, providing consumers with an option to pay for their purchases over a period of time. The new service allows users to divide their payments into four installments, which will be spread out over six weeks.
Apple Pay Later competes with established buy now, pay later firms such as Affirm and Klarna, who have become increasingly popular with consumers over the last few years.
Affirm shares dropped 7 percent after the announcement.
According to the iPhone maker, users will be able to manage, track, and repay their loans in their Apple Wallet. Individuals can apply for Apple Pay Later loans ranging between $50 to $1,000 and use them for in-app and online purchases made through merchants that accept Apple Pay.
Furthermore, Apple Pay Later loans can be applied for within the Apple Wallet without affecting the user's credit score. A soft credit check will be conducted once users choose the amount they want to borrow to ensure that they are financially capable of taking on the loan.
Apple plans to invite selected individuals to access a pre-release version of Apple Pay Later today. In the coming months, the company intends to expand access to all eligible users.
First Published: Mar 28, 2023 9:29 PM IST
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