Apple is giving Apple Pay users the opportunity to split purchases into four payments made over six weeks.
The company announced Apple Pay Later on Tuesday, with a prerelease version being made available to select users. The plan is to expand to all eligible users in the coming months, Apple said.
Approved users will see a “Pay Later” option while using Apple Pay to check out online and in apps on iPhone and iPad devices. Purchases made this way can be authenticated by Face ID, Touch ID or a passcode.
Apple Pay Later will also allow users to apply for loans between $50 and $1,000 and use them for in-app and online purchases made through merchants that accept Apple Pay. This can be done right at checkout, and payments have no interest or fees, according to a statement.
Apple Pay Later loans can be managed, tracked and repaid in users’ Apple Wallets. When users select an amount, a “soft credit pull” will be conducted to ensure the user is in a stable enough financial position to take on a loan. The loans will not affect credit scores, Apple said.
Additionally, because Apple Pay Later is enabled by the Mastercard Installments program, merchants that already accept Apple Pay will not need to make any changes.
Shares of Apple slid 1.4% Tuesday afternoon to $156.07.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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