Apple Pay is Apple’s digital wallet and payment system for hands-free payments with the swipe of an iPhone.Google Walletlets you do something similarwith an Android phone. In 2023, Apple added a feature called Apple Pay Later. It lets you defer costs over a period of time.
Some financing andbuy now, pay later appsmake similar promises or use underhanded tactics to make money. Apple Pay Later has few strings attached, helping Apple users make large purchases like gifts more affordable. Here’s how it works.
What is Apple Pay Later?
Apple Pay Later is a deferred payment loan option you can use with Apple Pay after you set up Apple’s digital Wallet app on the iPhone. It acts like the traditional Apple Pay but with one important difference: The money you pay is split into four equal payments over the next six weeks. Apple takes care of the details, including paying the merchant directly, so you only have to make the payments.
Qualification is speedy since Apple has most of the necessary information when Apple Pay is set up. When successful, you can spread big expenses over an extended period of time when you’re short on cash and need to take care of necessities such as rent, groceries, and utilities.
Are there any fees or interest rates for Apple Pay Later?
Apple doesn’t charge interest or fees to split payments like this as long as you make all four payments on time. However, fees may apply if you miss payments.
Is Apple Pay Later safe to use?
Compared to most other options, yes. It’s done on Apple’s secure operating system. However, you’re taking out a loan from Apple. This could affect your credit score along with similar financial risks. Apple reports that your credit score isn’t affected when applying for one of these loans.
What’s the limit for Apple Pay Later?
You can use it on purchases between $75 and $1,000. However, your past balance from previous Apple loans may affect your overall limits, which can vary based on approval.
How do you qualify for Apple Pay Later?
You need an iPhone or iPad with Apple Pay set up and connected to a current bank account or card for payments. Basic qualifications like being 18 or older and a US citizen apply. Apple also requires you to set up its two-factor authentication and possibly verify your identity with a driver’s license to use these services.
Next, you need to decide how much you want to borrow, such as the cost of a specific item. Choose theApple Pay Lateroption in the Wallet, selectNew Purchase Amount, and apply for loan approval.
If everything appears proper, Apple will approve your loan quickly. You’ll make the first of the four payments right away and receive a schedule for the final three payments. The funds are available in your Wallet, and you can use them to make a purchase up to 30 days after approval.
Apple may not approve the loan or may only approve a lower amount, so you must wait for confirmation. Having old, unpaid debts or other warning flags in your financial past often leads to a declined approval.
Do all merchants support Apple Pay Later?
No, but support is generous, especially if you already use Apple Pay. Merchants that use Apple Pay at their stores typically support Apple Pay Later as part of their arrangement with Apple. The same is true of payments made at online stores or apps that work with Apple.
There are exceptions. Businesses must operate in the United States to qualify. Some stores may refuse Apple Pay Later support for certain goods. It’s less likely to apply to services, ongoing subscriptions, or any kind of due payment. It doesn’t work for prohibited items.
Can you use Apple Pay Later multiple times at once?
Yes, you can have multiple Apple loans as long as you’re approved. However, you can’t go beyond Apple’s limits on the service.
Can You Use Apple Pay Later with an Android phone?
You cannot. You must use the Apple Wallet app to set up this kind of financing. That isn’t available on Android devices.
Now you know about Apple’s deferred payment option
With Apple’s limits in mind, you can use Apple Pay Later to purchase a number of goods. It isn’t enough to get a high-quality desktop computer or a new car. Still, you can use it to purchase appliances and other large purchases that may work better on a payment plan.
Apple Pay Later is still a loan, even if there isn’t any interest. Your financial situation and credit score are key factors in approval. Stop by our article onthe best budgeting appson Android to find ways to save money for your next major purchase.
