What is Apple Pay Later and how will it work

Apple Pay Later on a iPhone's screen showing recent transactions

Apple Pay is a convenient and safe mobile payment service that lets you conveniently make purchases using your Apple device.

While Apple Pay is great, it only serves as a wallet that “holds” all your cards securely. People who don’t want the interest rates may still opt for other payment options like buy now, pay later (BNPL) payment options. Happily, Apple plans to introduce its own BNPL service, called Apple Pay Later. 

Apple initially announced during the WWDC in June that Apple Pay Later will arrive with iOS 16. However, the iOS 16 page now mentions in its footnote that the feature will be “coming in a future update.”

While Apple hasn’t rolled out the new payment feature yet, here’s everything you need to know about Apple’s Pay Later move.

What is Apple Buy Now Pay Later?

Apple Pay Buy Now Pay Later on an iPhone Screen
Apple Pay Later in Wallet app / Source: Apple

Apple Pay Later is an upcoming feature that lets you purchase with Apple Pay and repay the cost over time. 

It is available for all online and app purchases checked out with Apple Pay. The bonus? You don’t have to worry about interests or fees with Apple Pay Later.

Similar to Apple Pay, Apple Cash, and Apple Card, the new feature is built into Apple’s Wallet app. This makes it easy for you to track what you owe and when they’re due.

When will Apple Pay Later be available on the iPhone?

Apple Pay Later’s launch date is still unknown. The tech giant only dropped a vague “coming in a future update” message. This contrasts with the other unreleased iOS 16 features listed on the iOS 16 page.

For example, Sharing your keys via Wallet or support for Matter in the Home app will both be “coming in an update later this year.”

How will Apple Pay Later work

Apple Pay Later Repayment on an iPhone screen
Apple Buy Now Pay Later repayment schedule / Source: Apple

Apple’s Buy Now Pay Later, aka Apple Pay Later, lets you buy online and make app purchases using Apple Pay. The cost is split into four equal payments, with the bill spread over six weeks.

The first payment is due upon purchase, and the subsequent payments are due every two weeks after your purchase date.

Once the feature is released, you’ll see two tabs: Pay in Full or Pay Later. If you select Pay Later, you’ll be shown a payment schedule (for every two weeks) and the payment breakdown in four equal parts.

If you’re a store or a merchant owner, you don’t need any integrations for Apply Pay Later since transactions will still happen through Apple Pay. However, the back-end payments will be different. 

Instead of directly receiving a person’s full payment, MasterCard Installments will provide merchants with the payment. Meanwhile, Goldman Sachs will be the official loan issuer. Apple has also created its own financial subsidiary, called Apple Financial Services, to handle all the credit checks and loan approvals.

Take note that Apple Pay Later is essentially a lending service. This means you’d need to apply for it and get approval from Apple before using the service. Apple will first run a credit check before deciding whether to offer you a loan or not.

Apple is yet to release the minimum and maximum purchase amounts, but CNET expects the range to be from $25 to $1,000.

Manage Apple Pay Later payments and track orders

Order tracking on Apple Wallet from a supported mechant
Order tracking in Apple Wallet / Source: Apple

Once you’ve made a purchase, you’ll be able to manage your payments in the Wallet app. You’ll likely see the payment schedule shown to you before confirming a purchase, which includes the total amount due and upcoming due payments.

Apple Pay Later payments are made with debit cards; it won’t work with credit cards. It lets you make additional payments anytime and set up automatic payments. Unfortunately, this also means that regular, timely payments won’t boost your credit score.

Where can you use Apple Buy Now Pay Later?

Apple will only be available to qualifying applicants in the US. It may not be available in every state. Furthermore, you can only use it for online and app purchases on the iPhone and iPad.

While Apple will likely work on making the feature available to other countries, there’s no information on which countries are next in line.

The feature will work for any store and app that supports Apple Pay purchases. Some of the stores that support Apple Pay include:

  • Costco
  • Target
  • Best Buy
  • Airbnb
  • Chevron
  • Disney
  • Dunkin’ Donuts

You can’t use Apple Pay on Walmart (because it wants you to use Walmart Pay instead).

Check out the best Apple Pay-supported apps for iPhone and the complete list of stores that accept Apple Pay in 2022.

In the fine print, Apple specifies that Pay Later will only work for app and online purchases done on the iPhone and iPad. 

Apple Pay Later vs. Apple Card monthly installments

Both Apple Card monthly installments and Apple Pay Later allow you to pay in installments.

Apple Card monthly installments are Apple’s way of helping you finance your purchase of certain Apple products. The financing terms vary depending on the product you wish to purchase.

Meanwhile, Apple Pay Later isn’t limited to Apple products. You can use it for both app and online transactions that accept Apple Pay. It doesn’t require the use of an Apple Card but requires you to finance your spending with a debit card.

They also vary in their installment period. Apple Pay Later is limited to six weeks, while Apple Card monthly installments can offer up to 24 months of monthly installments.


Q. Will Apple Pay Later charge fees?

No. Apple Pay Later doesn’t charge fees, even for late payments. However, late payments might prevent you from having future BNPL loans with Apple.

Q. Will Apple Pay Later have interest?

No. Apple Pay Later has zero interest fees.

Wrapping up…

Apple Pay Later is an excellent feature for those who want to make a purchase but currently have a tight budget. However, it’s important to note that Apple Pay Later is not just a new update for Apple Wallet—it’s a completely new financial service offered by Apple.

What do you think of Apple Pay Later? Will you use it? Share your thoughts below!

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