Apple launches buy now, pay later service

Apple has launched a buy now, pay later service called 'Apple Pay Later' that will allow users to split purchases into four payments, spread over six weeks with no interest and no fees.

Users can apply for loans between $50 and $1,000, which can be used to make online and in-app purchases on iPhone and iPad with merchants that accept Apple Pay. With plans to give it to all eligible users in the coming months, Apple will begin inviting select users to access a prerelease version of Apple Pay Later.

Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, said there was no one-size-fit-all approach when it comes to how people manage their finances. We're excited to provide our users with Apple Pay Later, because many people are looking for flexible payment options. How do I track, apply, and manage loans in my wallet?

Users can apply for a loan within their wallet with no impact on their credit, as a way to get started with the new service. They will be prompted to enter the amount they would like to borrow and agree to Apple Pay Later terms.

A soft credit pull will be done during the application process to make sure that the user is in a good financial position before taking on the loan.

After a user approves, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use Apple Pay Later to make a purchase.

When Apple Pay Later is set up, users can apply for a loan directly in the checkout flow when they make a purchase. The company said that Apple Pay Later is built right into Wallet, so users can view, track, and manage all of their loans in one place.

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