Apple Pay Later Review – Pros and Cons in 2023

young lady reading an apple pay later review
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Almost one billion people are expected to use buy now, pay later apps in 2027.

Naturally, big brands like Apple are trying to get in on the action.

Apple is releasing their own buy now, pay later (BNPL) feature called Apple Pay Later in the Spring of 2023. 

It’s expected to offer consumers BNPL services with zero interest or fees, so you’ll never pay more than you borrowed. 

Interested in learning more? 

Keep reading for my complete Apple Pay Later review. I’ll cover everything you need to know about this new buy now, pay later feature and more! 

What is Apple Pay Later?

View of Apple Pay Later payment dashboard
Apple Pay Later lets shoppers split purchases into four equal payments
Source: Apple

Apple Pay Later is a new buy now, pay later Apple Pay feature expected to release in the Spring of 2023. 

Apple Pay Later will be available for qualifying users in the U.S. on iPhones and iPads for purchases made with Apple Pay online or through apps. Apple has not yet released any information regarding an offline or in-store option. 

It will be similar to other buy now, pay later services as it will allow customers to split up checkout totals into equal payments spread over several weeks with no interest or fees

Currently, the only financing option available is a Pay-in-4 plan. This means that you’ll pay a 25% deposit when checking out and 25% every second week for six weeks. 

In other words, if you purchase something worth $200, you’ll pay $50 today and $50 every second week until you’ve paid off the full purchase amount. 

Rumors are suggesting a transaction limit of $1,000, but again, no one will know the actual limit until Apple officially releases the buy now, pay later feature.

Apple Pay Later will use the Mastercard network, so it will work seamlessly with Apple Pay and require zero integrations on the merchant side. 

Plus, this feature will come built into Apple Wallet, so users can easily track payment amounts and due dates without having to download any new apps.

How To Use Apple Pay Later

Are you considering signing up for Apple Pay Later in 2023? 

Luckily, Apple has provided some information about how this feature will work, so you can prepare beforehand.

Here’s my guide on using Apple Pay Later:

  1. Set up your Apple Wallet
  2. Buy from your favorite retailers
  3. Manage your payments

Step 1: Set Up Your Apple Wallet

When Apple releases this feature, you can begin using it by heading to the Apple Wallet app on your Apple device. From there, you can link your credit or debit card you’ll use for installment payments. 

I’ll share the official requirements in my full Apple Pay Later review once the feature has launched. 

But users can expect to have to meet the minimum criteria below, based on federal laws and statements released by Apple:

  • Own an iPhone, iPad, or Mac
  • Be 18 years or older
  • Live within the U.S.

The minimum credit requirements aren’t clear yet. If Apple Pay Later is like most buy now, pay later apps, you won’t need a good credit score

But to be safe, I recommend focusing on improving your credit in the meantime in case Apple has stricter requirements.

Step 2: Buy From Your Favorite Retailers

Apple Pay Later will work at online stores that accept Apple Pay. 

Currently, Apple Pay can be used at over 85% of U.S. retailers. 

This means the new BNPL feature will also be available to use at most stores. This includes grocery stores, clothing stores, taxis, and even vending machines. 

Step 3: Manage Your Payments

View of Apple Pay Later option in Apple Wallet
Apple Wallet will have a new buy, now pay later feature called Apple Pay Later
Source: Apple

You can manage everything within your Apple Wallet app, including your payments and card details.

Apple Pay Later withdraws 25% of your checkout total every second week from the credit or debit card you’ve linked to your Apple Pay.

I suggest paying your installments early. Even though there aren’t late fees, Apple might report missed payments to the credit bureau, hurting your credit score.

Is Apple Pay Later Legit?

Apple Pay Later is a legit buy now pay later feature offered by Apple. It’s one of the newest buy now, pay later apps and is expected to release in Spring 2023.

Apple Pay Later will rely on Apple Pay’s infrastructure, which has been around for almost a decade.

When using Apple Pay or Apple Pay Later, you won’t have to worry about security. 

Apple is dedicated to protecting your personal information. They don’t store card details on your device or retain transaction information, so you won’t have to worry about it leaking into the wrong hands.

Is Apple Pay Later Safe?

Apple Pay Later is one of the safest payment methods because it requires your Face ID, Touch ID, or custom passcode to authenticate transactions. 

But what’s unique about Apple Pay Later is that it doesn’t store card details on your device. 

And you’ll notice that when you buy something with Apple Pay, you only see the last four digits of your card number. This is for security reasons, as Apple only stores a portion of your card information.

So, in theory, even if someone accesses your account (which is unlikely), they won’t be able to view your entire credit or debit card number.

Instead, Apple Pay provides the retailer with a unique device account number during every transaction. This number isn’t available on your Apple devices, and Apple doesn’t even store it on servers, making it near impossible for fraudulent activities to take place.

Apple Pay Later Reviews

Apple Pay Later is expected to launch in Spring 2023, so there aren’t any Apple Pay Later reviews available yet.

Check back here for a full Apple Pay later review once this buy now pay later feature is released in the Spring of 2023! 

Commonly Asked Questions About Apple Pay Later

Is Apple Pay Later Real?

Apple Pay Later is a real buy now, pay later feature that Apple is launching in spring 2023. It allows users to buy something today, pay a 25% down payment, and pay the rest in equal installments every second week for the next six weeks.

Is Apple Pay Later Available In Beta?

Apple Pay Later isn’t available in beta as Apple plans to release the full version sometime in Spring 2023.

Does Apple Pay Later Run Your Credit?

Apple Pay Later will conduct a soft credit check to approve your account. This helps them get an idea of your credit score and repayment history. However, Apple never went into more detail about whether they’ll report your on-time and late payments.

Is Buy Now, Pay Later A Good Idea?

Buy now, pay later is a good idea if you’re buying large, one-off items and need extra time to pay them off. But if you’re using buy now pay later for impulse shopping, it can be a quick way to land in debt as the payment frequency becomes overwhelming.

What Happens If You Don’t Pay Apple Pay Later?

Apple Pay Later doesn’t charge late fees or interest if you miss a payment. But it’s still important to settle your account on time because if you’re always late, Apple Pay Later might report your account to the credit bureaus.

Apple Pay Later Interest Rate?

Apple Pay Later charges zero interest. This makes it an excellent alternative to credit cards, which can have rates well over 20%, trapping you in mountains of debt.

What Is Apple Pay Later Mastercard?

Apple Pay Later relies on Apple Pay’s infrastructure, and Apple Pay uses the Mastercard network to process transactions and payments. However, you can connect any credit card to your Apple Pay account.

Apple Pay Later Credit Check?

Apple Pay Later runs a soft credit check when approving your account. Unlike a hard inquiry, a soft credit check won’t hurt your credit score. But keep in mind that Apple Pay Later can report your account if you don’t make the minimum payments.

Apple Pay Later Countries Available?

When Apple releases Apple Pay Later in 2023, it’ll only be available in certain states in the U.S. But as Apple’s digital infrastructure continues to grow, you can expect this buy now pay later feature to be available across the U.S. and most countries worldwide.

What Are Apple Pay Later Alternatives?