Apple launched a pre-release version of its new BNPL feature, Apple Pay Later, which allows randomly selected users to borrow between USD 50 to USD 1,000 and return the payment for their purchase over four equal payments without interest or late fees. The feature will be offered to all eligible users on iOS 16.4 or iPadOS 16.4 in the coming months. 

Apple Pay Later allows users to apply for loans within the Wallet app, and after a soft credit pull and approval, the user can pay their purchase back in four equal payments over six weeks. The loans can be used for online and in-app purchases on iPhone and iPad with merchants that accept Apple Pay. Further, users can view their payments in the Wallet app, with a calendar view showing the dues for all their loans over a 30-day period.  

Apple Financing, a subsidiary of Apple, is responsible for handling credit assessment and lending for Apple Pay Later. The company plans to report Apple Pay Later loans to US credit bureaus. On the merchant side, Apple Pay Later uses the Mastercard Installments program, with Goldman Sachs serving as the issuer of the Mastercard payment credential for all purchases made through Apple Pay Later.

Analyst QuickTake: Apple's market launch of its BNPL product comes one and a half years after initial reports of its development in partnership with Goldman Sachs in August 2021 . Further, the news of the launch follows Apple's disclosure of the criteria to access its BNPL products, which was released during testing in February 2023 .