Apple Pay Later: Availability, limits, and whether you should use it

If you just bought a new iPhone for the first time, then you may not be familiar with all of Apple's digital services. Apart from the excellent Macs, iPhones, and other hardware it puts out there, the company has also been focusing on services that further enhance users' experience. Apple Pay Later is one of these offerings, allowing eligible customers to request small loans from the Cupertino firm when shopping. Though, should you really use Apple Pay Later? If so, where can you use it, and what are its limits? Let's find out!

Availability and prerequisites

Apple Pay Later isn't supported internationally yet

To use Apple Pay Later, there are some criteria you should meet:

• Your iPhone or iPad must be running iOS/iPadOS 16.4 or later.
• You must be a lawful resident or citizen in the U.S.
• You should be at least 18 years old (or 19 years old in Alabama).
• You should have a physical U.S. address.
• Apple Pay must be set up on your iDevice.
• Two-factor authentication must be enabled for your Apple ID.
• The seller you're buying from must be located in the U.S.
• The linked bank card in Apple Pay must be a debit one.
• You may potentially need to verify your identity with a state-issued ID or driver's license.

So, as you can see, Apple Pay Later is limited to U.S. residents and merchants. While Apple could eventually expand the service to include more countries, you currently won't be able to use the service if you don't meet the company's criteria.

Apple Pay Later limits

The money-borrowing service works in a very specific way

Apple Pay Later has some pretty tight restraints. For starters, the requested loan has to be between $75 and $1,000. So if you're trying to buy a MacBook Pro (M3, 2023), for example, you won't be able to rely on Apple Pay Later. Additionally, the merchant you're trying to buy from has to support Apple Pay and be based in the U.S. If you're approved for the loan, you will have to make a 25% down payment on the spot, followed by subsequent 25% payments every two weeks. So the actual payment deadlines are:

1. First 25%: None
2. Second 25%: Week 2
3. Third 25%: Week 4
4. Fourth 25%: Week 6

So, unlike typical credit cards, you're not getting 30 days to pay 100% of the loan. Instead, you're getting 2-week deadlines for each 25% of the loan. Interestingly, as long as you pay on time, there are no added fees or interest. You just pay the original price through four equal, biweekly installments.

How to set up Apple Pay Later

Getting started only takes a few clicks

If you're eligible to use Apple Pay Later, you can set it up by following the steps below:

1. Launch the Wallet app on your compatible iPhone.
2. Hit the Plus (+) button in the top right corner.
3. Click on Set Up Apple Pay Later.
4. Hit Continue.
   

   

   

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5. Click the Next button in the top right corner.
6. Choose the amount you'd like to request, then hit Next.
7. Hit the Continue button.
   

   

   

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8. You will then be prompted to enter your personal information. Once you do, your request will either be approved or rejected.

It's worth mentioning that each Apple Pay Later request will need to be approved individually. Though, once you input your personal information for the first time, the service will store and autofill it when applying for future loans. Notably, a Pay Later option should also appear on the checkout prompt when using Apple Pay at an eligible store. So, you can opt for Apple Pay Later loans directly on that screen as an alternative to using the Wallet app.

Should you use Apple Pay Later?

That depends on your personal needs and expectations

When compared to credit cards, Apple Pay Later can be pretty constrained. After all, you're limited to just Apple Pay purchases that cost no more than a grand. With a credit card, you may be eligible to take significantly larger loans. That's not to mention that the bank would expect you to pay back 100% of the amount in 30 days. You're not forced to pay small installments every two weeks.

Another aspect to consider is points and cashback. Many credit card programs offer users points every time they spend with their cards to redeem later on. Through Apple Pay Later, you seemingly don't get any benefits of this sort. Apple's service, however, could appeal to users due to its simple approach. Customers get to apply directly through the Wallet app, then view their upcoming due dates through a dedicated calendar with uncomplicated visuals.

When it comes to missed deadlines, it's still unclear what consequences a user will have to face specifically. Though, the company does warn that the bank could charge customers additional fees if they don't have sufficient funds in the debit cards linked to Apple Pay on payday. It also mentions that it could share users' loan-related records with credit bureaus.

So, if Apple Pay Later's simple approach matches your needs and expectations, there are no downsides to using it. Though, if your bank offers a credit card program with notable benefits, then you may make more out of a credit card. Ultimately, we've broken down the main pros and cons of each service, and only you can decide which one works best for you.

The bottom line

Apple Pay Later is nice to have

Like any loaning or credit card program, users should only use Apple Pay Later when they're confident that they can pay back on time. While the service's 25% biweekly structure makes it a bit pointless for monthly earners, it's still a welcome feature for those not wanting to pay in full on the spot. Ultimately, there's no long-term commitment involved when using this feature. You could try it once, then stop using it if you don't like its approach. Nonetheless, signing up for it is objectively simpler than applying for a regular credit card through a bank.