Apple launches Apple Pay Later BNPL service

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Apple launches Apple Pay Later BNPL service

Apple jumped on the Buy Now, Pay Later BNPL bandwagon to take on PayPal, Klarna and Affirm. The iPhone maker announced on Tuesday it will launch its highly anticipated Apple Pay Later service, which allows users to split their purchases into four payments over the course of six weeks with zero interest and no fees.

The news came a year after Apple acquired London-based Fintech startup Credit Kudos for $150 million as part of its push to dominate the payments space. The Apple Pay Later service is part of the tech giant's push into the lucrative BNPL market.

Apple said in a statement that Apple Pay Later will allow users to split purchases into four payments, spread over six weeks with no interest and no fees. Users of Apple Pay can easily track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet.

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

Merchants that already accept Apple Pay will not have to make any changes to implement the software for their customers, because of the Mastercard Installments program.

There is 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 are excited to provide users with Apple Pay Later, said Jennifer Bailey, Apple vice president of Apple Pay and Apple Wallet. Apple Pay Later was designed to make it easy for consumers to make informed and responsible borrowing decisions because of the fact that it has no fees and no interest. Apple added that users can apply for a loan within the Apple Wallet app, without it affecting their credit score. A soft credit pull will be conducted to make sure they are in a good financial position to take a loan after they select the amount they want to withdraw.

Apple will allow select users to access a prerelease version of Apple Pay Later on Tuesday, and the company plans to expand access to all eligible users in the coming months.

Users will see a Pay Later option while using ApplePay to check out online and in apps on iPhones and iPads. Apple said that purchases using the software will be authenticated using Face ID, Touch ID or a passcode.

Apple Pay Later is built right into Wallet, so users can view, track, and manage all of their loans in one place. Users can easily see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days with Apple Pay Later in Wallet. They can see all upcoming payments on a calendar view in Wallet to help them track and plan their payments. Users will receive notifications via Wallet and email before a payment is due, so they can plan accordingly. Credit cards will not be accepted by the company, as they will be asked to link a debit card from Wallet as their loan repayment method to prevent users from taking on more debt to pay back loans.