What is Apple Pay Later and how do I sign up?

APPLE Pay Later is the tech giant’s brand new financial service allowing iPhone owners to split payments.

The firm is jumping on the “buy now, pay later” bandwagon which has skyrocketed in popularity.

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What is Apple’s new Pay Later feature?

Apple Pay Later is a financial product.

It’s essentially a loan which allows you to make purchases now and split the payments in four.

You can spread it over six weeks with no interest and no fees.

Apple will offer loans between $50 and $1,000.

But it’s only open to people in the US for now.

How does the Pay Later feature work?

Apple Pay Later will work much like rivals such as Klarna work.

You sign up via the app, link a bank account or debit or credit card and agree to pay instalments.

Most people are approved in a matter of minutes.

Then scheduled payments are automatically taken out of your bank account.

Most services like this generally don’t charge more than a customer would have paid up front, meaning there’s technically no interest, so long as you make payments on time.

But Apple’s said it will not charge late fees, either flat or as a percentage only the possibility of missed payments reported to credit bureaus, and a loss of access to the loans.

If a user wishes to defer payments, or set up a different payment plan they can contact support.

What have people said about Apple’s new Pay Later feature?

Experts have reacted to the announcement.

“Apple Pay Later will absolutely wallop some of the other players. Other companies would’ve taken a look at Apple’s announcement today because they are an ubiquitous name,” said Danni Hewson, head of financial analysis at AJ Bell.

“This will take a bite out of the market share of other players.”

Christopher Brendler, analyst at D.A. Davidson, added: “We expect Apple to tread cautiously, especially in this macro environment.”

Is the Pay Later feature worth using?

Buy now, pay later has been very popular of late.

If you have the means to make all payments on time, buy now, pay later loans are a relatively healthy, interest-free form of consumer credit.

Improper use of buy now pay later credit could affect your ability to be approved for credit cards or a mortgage.

Find out more about buy now, pay later here.

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