Installment purchase: Apple’s “Pay Later” will come later

Apple wants to allow customers with Apple Pay to pay for orders after six weeks. But “Pay Later” is now delayed.


Apple plans to compete with installment payment services like Klarna in the future – at least in the United States. The service called Apple Pay Later was announced in the summer, but will apparently be delayed. This is reported by journalist Mark Gurman from the financial news agency Bloomberg. According to this, it could even take until spring – and iOS 16.4 – before Apple Pay Later is implemented.


With the new installment payment service, Apple wants to allow users of its in-house payment service Apple Pay to pay off larger purchases over a fixed period of time. This is possible via the wallet app on the iPhone – or directly with an online purchase. The installments are paid every two weeks over a period of six weeks. For example, if the total is $200, you pay $50 first, then $50 more each in two, four, and six weeks. Interest or fees should not accrue to end users.

According to Apple, Apple Pay Later will be available for all amounts paid with Apple Pay – whether there will be an additional credit check remains unclear. However, Apple said the service is available to “qualified applicants.” It is therefore conceivable that not every Apple Pay user may use Apple Pay Later right away.

However, Apple now seems to be having difficulties with the implementation. It was initially unclear whether the problem was technical or business related. Apple only announced that Apple Pay Later will be “in an upcoming [iOS-]Update” will be released without giving a timeframe. Gurman believes that the company itself is not entirely sure when Apple Pay Later will be ready. There are “rather significant challenges of a technical nature in the rollout of the service”.

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The business model also remains unclear. Apple does not want to charge its customers for paying in installments. Either the group wants to achieve that more and larger amounts are processed via Apple Pay – or the service has to be paid for by the dealers. That in turn would require new contracts, which in turn would have to be processed through Apple’s banking partner Goldman Sachs.