Does Apple’s pay later service require iOS 16.4?

Apple has introduced “buy now, pay later” service called Apple Pay Later that will divide purchases into four payments, spread over six weeks, with no interest or fees. It resides in the iPhone’s Wallet app, with users able to borrow amounts of $50 to $1,000 from Apple.

Starting March 28, 2023, Apple will begin inviting select users to access a pre-release version of the service, with plans to offer it to all eligible users in the coming months.

“There’s no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet.

“Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”

How to get started?

With Apple Pay Later, users can apply for a loan within Wallet with no impact to their credit. They will then be prompted to enter the amount they would like to borrow and agree to the terms.

A soft credit pull will be done during the application process to help ensure the user is in a good financial position before taking on the loan.

After a user is approved, they will see the Pay Later option when they select Apple Pay at checkout online and in apps on iPhone and iPad, and can use it to make a purchase.

Once Apple Pay Later is set up, users can also apply for a loan directly in the checkout flow when making a purchase. The service is built right into Wallet, so users can view, track and manage all of their loans in one place.

Users can also easily see the total amount due for all of their existing loans, as well as the total amount due in the next 30 days. They can also choose to see all upcoming payments on a calendar view in Wallet to help them track and plan their payments.

Before a payment is due, users will also receive notifications via Wallet and email so they can plan accordingly.

Users will be asked to link a debit card from Wallet as their loan repayment method; to help prevent users from taking on more debt to pay back loans, credit cards will not be accepted.

Apple Pay Later requires iOS 16.4 and iPadOS 16.4.

Read: Apple rolls out iOS 16.4: Should you upgrade your iPhone?

Mastercard and Goldman Sachs

Offered by Apple Financing, a subsidiary of Apple, the pay later service is enabled through the Mastercard Installments programme.

Merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers. When a merchant accepts, the service will be an option for their customers during checkout online and in apps on iPhone and iPad.

Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.

Apple Pay Later for retail sector

Last month, Apple expanded an internal test of its upcoming BNPL service to the company’s thousands of retail employees. The tech giant contacted retail staffers to offer them a test version of the service, according to its workers who asked not to be identified.

Read: Apple expands testing of ‘buy-now-pay-later’ service to retail employees