Apple Launches Pay Later services: Now you Can Buy and Pay Later on Apple

Apple on Tuesday 28th March 2023, finally launched its pay later service. Customers can now split payments four ways and complete them within 6 weeks. 

This new software comes with loads of benefits for users as reported by the tech giant, including avenues to track and repay their loans in the apple wallet, apply for no-interest loans, and use them for in-app and online purchases worth up to $1000. All merchants that accept Apple pay can access these services.

In collaboration with Mastercard, merchants will not have to make any changes on their platforms to accept the Apple pay later services, so far they already operate the Apple Pay Services.

When users apply for the load through the Apple Wallet App and select their preferred amount, a soft credit pull will be conducted to check their eligibility and financial health to prevent them from too many loans, even though the loan will not affect their credit scores. Apple expects the Service to be available to all eligible users in a few months.

Security Measures 

Like other payment services, Apple Pay Later also enables Face ID, Touch ID, and Passcode authentications, and users will not have to upload any additional documents to access the loans. 

The service was designed to compete with already established buy now pay later services such as Affirm, After Pay, and Klarna, A move that already has a market effect as Affirm shares (AFRM.O) took a hit, with a 7% drop in share price after Apple announced the launching on Tuesday.

It is no surprise, as Apple's business model is edged by its competitive advantage over other industry players, over 85% of US merchants use the Apple Pay services, making them the biggest.

Effects on Apple's stocks

Since the start of 2023, Apple's Stock (AAPL) prices have soared from $125.07 in January 3 to closing at $157.65 on the day the Pay Later service was announced and expected to close at a year to date share price of $162.36 on March 30, about 30% increase from January to March and 3% increase since the launch date.

Experts believe the Pay Later service will encourage AAPL to surpass the all time high share price of $180 recorded in the January of 2022.

Affirm is not worried though, as they believed similar services are essential, one of their spokespersons said that transparent and flexible payment options that can displace credit cards are good for customers, especially when there are no hidden charges.

Apple's Buy Now Pay Later (BNPL) option will be on display while users are trying to make purchases and during checkout. 

How to Payback

Every user will be prompted to link their accounts with their preferred debits as credit cards will not be allowed. The due loans within 30 days period will be visible on the app and users can easily view their transaction details and history.

Other companies that BNPL options enable include, PayPal, GoCardless, Sezzle, and Zip.

Apple first announced the introduction of the service in mid-2022, but it was met with a lot of criticisms and delays. Now, apple announced it will begin to invite selected users to test the services.