April 13, 2024

Apple first introduced its plan to create a purchase now, pay later possibility for the Apple Pockets in July 2021, nevertheless it was not till this week that the service formally launched.

Apple Pay Later permits U.S. consumers to separate purchases — retail, ecommerce, in-app — into 4, interest-free funds. The service may encourage some consumers to make purchases sooner, which, in flip, may increase each omnichannel retail and ecommerce.

In its release, the corporate stated its new BNPL service was created “with customers’ monetary well being in thoughts,” including:

Apple Pay Later permits customers to separate purchases into 4 funds unfold over six weeks with no curiosity or charges. Customers can simply observe, handle, and repay their Apple Pay Later loans in a single handy location in Apple Pockets. Customers can apply for Apple Pay Later loans of $50 to $1,000, which can be utilized for on-line and in-app purchases made on iPhone and iPad with retailers that settle for Apple Pay.

Screenshot of three iPhone screens with separate Apple Pay Later interfaces.

Customers can observe, handle, and repay their Apple Pay Later loans in Apple Pockets. Click on picture to enlarge. Supply: Apple.

Retailers already accepting Apple Pay want no extra motion — the BNPL possibility ought to work routinely. Retailers on Shopify, BigCommerce, and different platforms can activate Apple Pay.

Apple’s BNPL Benefit

Apple Pay Later may provide 4 vital benefits for consumers in comparison with different providers.

Huge consumer base. By some estimates, 9 out of 10 bodily retail places in america settle for Apple Pay. Furthermore, roughly 48% of U.S. smartphones are Apple units. Backside line, Apple’s large consumer base may quickly allow vital market share within the BNPL area.

Trusted model. Many shoppers may decide Apple Pay Later over different suppliers or use BNPL for the primary time as a result of they belief the Apple model and its fame for delivering safe, high quality services and products.

Simple to entry. The service is accessible in Apple Pockets. Buyers can apply for brand new loans, observe excellent loans, and handle compensation in an app they have already got. As soon as the patron has added it, Pay Later ought to be prepared for purchases.

Cheap. The service doesn’t cost curiosity and has no charges if the patron remits on-time funds. Even people flush with money may contemplate taking out an interest-free, $1,000 mortgage from time to time. A client’s personal financial institution might cost, for instance, a debit payment, however Apple Pay Later itself is affordable.


The launch of Apple Pay Later may immediate certified consumers to strive the service, making a short-term bump in gross sales.

retailers ought to first ensure that they will settle for Apple Pay. Most ecommerce platforms enable sellers to simply accept Apple Pay and show its button.

Sellers can tout Apple Pay Later — notably to consumers on an iPhone — and the comfort of splitting purchases into interest-free installments. Promotional choices may embody a banner on checkout pages and even an embedded video demonstrating the right way to use the service or, for that matter, different BNPL suppliers.

There may be additionally the chance to leverage Apple’s model. By providing Apple Pay Later, retailers may benefit from the belief and loyalty related to the corporate. This affiliation may construct credibility — fostering belief and inspiring repeat purchases, as consumers know they’re working with Apple.

In the end, retailers might not know definitively if Apple Pay Later drives new or sooner gross sales. Nonetheless, there’s no draw back to selling it.