Apple Pay Later launches soon, here’s how it works

Announced last year, Apple Pay Later seems almost ready to be released. According to Bloomberg‘s Mark Gurman, it will be available in the next few weeks as Apple rolls out a broader test phase with its retail employees.

The service is one of the features planned to launch during iOS 16’s lifecycle. Exclusive to the US, this function will bring a “seamless and secure way” to split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with 0% interest and no fees of any kind.

But getting to use Apple Pay Later will depend on one key factor: whether you’ve been a good customer in the past. It will evaluate your spending history and which Apple devices you own.

The lending criteria were revealed as part of a test of the service with Apple employees, who can now use the option for their own personal purchases. The evaluations determine whether the company is willing to lend money to applicants and how big an amount it will approve. Many testers are seeing loan approvals for $1,000 and under.

Bloomberg says the Apple Pay Later offer will expire after 30 days. Applications could require a copy of a government ID, full social security number, and two-step verification of an Apple account. Loan status with this service won’t impact access to the company’s services.

When Apple Pay Later launches, this will mark the first time the company uses an in-house payment platform and conducts lending itself. Bloomberg notes that the transaction histories are stored with Goldman Sachs and MasterCard but not with Apple for privacy reasons.

Besides this service, Apple is also readying Apple Pay Monthly, an iPhone hardware subscription, and saving accounts. BGR will let you know once these features start to land.