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Apple Pay Later launches

Apple Pay Later launches

Apple has finally launched its buy now, pay let service in the US, enabling users to split purchases into four equal payments.

First announced last June, Apple Pay Later is now open to select users in a pre-release version, with a full roll out set for the coming months.

Users apply for loans of $50 to $1000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay. A soft credit pull is done during the application process with no impact on the user's credit.

Repayments are made in four equal instalments, spread over six weeks with no interest and no fees. Users track, manage, and repay their Apple Pay Later loans in one location in Apple Wallet.

While Apple is working with Goldman Sachs and Mastercard on the service, it has set up a wholly-owned subsidiary, Apple Financing, to offer loans directly.

Apple is also handling credit checks for the service inhouse. Earlier this year, it acquired UK credit bureau Credit Kudos, which uses open banking technology to deliver finely-tuned credit scores.

By taking the process inhouse, Apple will earn interchange fees from transactions and also avoid the need to share customer data with third parties.

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