Elain Brown Tech 06.07.2022 09:Jun AM EDT

Apple Pay Later Feature Includes an Installment Plan with No Interest Fees

Apple has announced the iOS 16 during this year's WWDC.

With the introduction of a brand-new feature that was shown at Apple's annual conference, the tech giant demonstrated its commitment to the concept of purchase now, pay later.

This feature, which will be included in Apple Wallet and is known as Apple Pay Later, is included in the recently released version of iOS 16 for the iPhone.

Apple Pay Later is a free service that gives you the option to pay for products or services in multiple installments over time. To put it another way, so long as users continue to make their minimum payments on time, they will not be subject to any additional fees or interest charges.

Apple Pay Later

Apple is introducing a new option for Apple Pay called Apple Pay Later, which will allow users to pay for their purchases in up to four equal installments over a period of time without being charged interest. Apple's introduction of a buy now, pay later (BNPL) service will be available with the release of iOS 16.

According to MacRumors, users will have the option to pay in installments spread out over a period of six weeks. The Wallet app is used to manage payments, and customers have the option to prepay for purchases if they so choose.

Apple Pay Later will enable users to split the cost of a purchase into four equal installments that may be paid over a period of three months. According to Apple, Apple Pay Later will have no interest added to the balance and will not charge any fees. It will also be available wherever Apple Pay is accepted.

Users will be able to set a personal budget and get an updated summary of all of their incoming payments and the total amount that they are currently in debt within the Wallet app. Apple has stated that Apple Pay Later will only be accessible to customers who meet the requirements, but the company has not provided any other information.

How Does Apple Pay Work?

With Apple Pay Later, customers will be able to break up the total cost of their purchase into four equal installments that are spaced out over a period of three months. The user is responsible for the initial payment when they first purchase the item, and further payments are due every two weeks after that.

As reported by CNET, after the launch of Apple Pay Later, customers will be able to choose between "Pay in Full" and "Pay Later" when they are checking out their purchases. If users choose the second option, they will be presented with a payment schedule that details the amount of each of the four payments as well as the day on which they are due.

When it comes to accepting payments using Apple Pay Later, retail establishments and business owners won't have to make any adjustments to their operations. Transactions will take place just as they did in the past; the one and only change will be in the manner in which back-end payments are processed.

There is currently no information available to suggest if Apple Pay Later will have a set minimum or maximum amount for a purchase. Apple Pay Later will be released at the same time as iOS 16 and will be available to the public.