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Apple Pay Later: What Is It And How To Use It?

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Apple Pay Later is one of the latest features announced at this year’s WWDC, Apple’s developer conference. If we put aside Apple’s ambition to go deeper into the financial sector, it seems like we’re just… Apple customers could greatly benefit from Apple Pay Later when it comes out this fall. So let’s take a look at what we know so far about Apple’s new finance feature and see if it will be as promising as Apple claims.

What is Apple Pay Later?

Apple Pay Later is a new financial service that allows users to make Apple Pay purchases and divide the cost into four equal payments spread over six weeks, with no interest and no fees. You can find it in the Wallet app on your iPhone. For example, if you want to buy a pair of Jordans from Amazon that cost $455 and don’t want to pay the entire amount at once, you can use Apple Pay Later to order the shoes and pay for them in four installments of $113.75 each. two weeks. You pay the exact amount of $455 with no fees or interest. However, based on the image below, you will most likely have to pay the first installment on the same day you purchase the product.

Since Apple Pay Later is part of Apple Pay, it will likely be safe to use as well. As Cupertino promotes, “Apple Pay is more secure than using a physical credit, debit, or prepaid card.” It needs confirmation via Face ID, Touch ID or passcode for making transactions. And every time you make a purchase, it uses a device-specific number and a unique transaction code. With this method, Apple does not share or store your identity or credit card numbers with merchants on your device or on its servers.

Where is Apple Pay Later available?

Apple Pay Later will only be available in the US at launch. As for which stores you can use it in, Cupertino said Apple Pay Later will be available wherever Apple Pay is supported.

When will Apple Pay Later be available?

We expect Apple Pay to release later this fall with iOS 16. Cupertino showcased Apple Pay Later at the iOS 16 keynote as part of the new suite of features coming to the Wallet app.

How does Apple Pay Later work?

If you’ve been dreaming about using Apple Pay Later to buy the new iPhone 14 Pro Max, you’ll be disappointed to learn that the new Wallet feature will most likely be limited to a maximum of $1,000 per transaction.

Plus, the exact maximum credit Apple allows you might not even be $1,000. The amount you can get will depend on your credit report and score. As Apple said, “loans are subject to eligibility checks and approvals.”

Cupertino will also use its customers’ data for identity verification and to prevent fraud attempts. So if you’re in good financial standing with Apple and other banks and have steered clear of fraudulent activity, you’re more likely to be approved for Apple Pay Later.

Now comes the question: who lends the money for your Apple Pay purchase? Well, for its Apple Pay Later feature, Cupertino won’t be using Goldman Sachs’ services to borrow money like Apple Card does. The tech giant will use its own subsidiary called Apple Financing LLC to fund your spending habits. In principle, you therefore do not pay your loan to a bank, but to Apple itself.

On the technical side, Apple will use Mastercard’s system to connect customers and merchants. When a user purchases through Apple Pay Later, the merchant receives a 16-digit card number generated by Goldman Sachs, which certifies that the purchase was made through Apple’s new finance function.

How to request Apple Pay Later?

According to Apple, you can request Apple Pay Later with Apple Pay purchases or directly in the Wallet app. It is not yet known whether there will be an application procedure.

How to buy products with Apple Pay Later?

When you make a purchase with Apple Pay, you have the option to “Pay in full” or “Pay later”. If you choose the latter, you sign up for the Pay Later program and if you qualify, continue with your purchase.

Please note that to use Apple Pay Later you will need to link your debit cards to the service and unless you opt out, the system will automatically debit your bank account every two weeks.

You can also see how many installments you have left in the Wallet app, and if you have more cash, you can pay the next amount before the due date.

Apple Pay Later vs Apple Card

Apple Pay Later or Apple Card? Which one is better? Well, the Apple Card is a credit card. Although you do not pay any fees, you do pay interest on the borrowed money. When buying a product with an Apple Card, you can choose a long period, such as 12 or 24 months, to repay the loan. You will also receive money back every day when using your Apple Card.

With Apple Pay Later, you can buy a product and pay the exact price without interest. However, the amount you can borrow is capped. In addition, you cannot choose the loan payback period and there are no cashback benefits when you buy something with Apple Pay Later.

So, which one to use? Well, it all depends on what you want to buy. It seems that Cupertino wants you to use Apple Pay Later if you want to make smaller purchases and his Apple Card if you want to buy something expensive.

For example, it would be better to use Apple Pay Later to buy a pair of Jordans or, as Apple showed, an espresso machine. This way you do not cough up the entire amount in one go, but you also do not pay interest.

However, for purchases north of $1,000, Apple Pay Later just won’t work. You must turn to the Apple Card or other type of credit service.

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