Normally, when you buy an item using Apple Pay on your iPhone, the entire amount comes out of your credit or debit card at once. But an option from Cupertino known as Apple Pay Later lets you fund your purchases through a type of installment plan.
Using Apple Pay Later in the Apple Wallet app on your iPhone, you apply for a loan between $50 and $1,000. As long as your purchase history and financial position are in good standing, the loan is approved quickly, and subsequent purchases from online vendors or physical stores that accept Apple Pay can be split into four, no-interest and no-fee payments over a six-week period.
With Apple Pay Later, Apple pays the merchant directly, and then you repay Apple. By default, the payments are automatically taken out of your debit card, though you can opt to pay the loan amounts manually if you wish. Here's how to set up and use the Apple Pay Later feature.
Requirements to Use Apple Pay Later
To use Apple Pay Later, you’ll have to link a debit card in the Apple Wallet app to serve as your loan payment method. Credit cards are not accepted (not even the Apple Card). Apple Pay Later also has the following requirements:
How to Set Up Apple Pay
Before you can use Apple Pay Later, you must first set up Apple Pay and add a debit card to your account. Follow the steps outlined in our setup guide, if you have not already done so. You can then view and manage your cards in the Wallet app on your iPhone.
Apply for an Apple Pay Later Loan
To apply for an Apple Pay Later loan, tap the Pay Later banner in the Wallet app. If you don’t see it, tap the plus (+) icon at the top. Under Available cards, tap Set Up Apple Pay Later. The first time you do this, Apple will show you several screens on how the feature works. Tap Apply Now > Continue.
At the Getting Started screen, tap Next. Enter the amount of the loan you want—any number between $50 and $1,000—and Apple will display the details of the payment plan, with a breakdown of how much money is due at purchase and how much is due at each of the subsequent intervals.
If the details look good, tap Continue and your information is processed. You’re then asked to supply your name, date of birth, phone number, and address, then confirm the information to run a credit check. Apple promises that the check will have no impact to your credit.
Once all info is submitted, the app will take a moment to process your request. If your credit history is solid, you’ll receive a message that you’ve been approved for the amount you entered.
Make a Purchase With Apple Pay Later
Now let’s say you’re shopping at an online store or physical merchant that accepts Apple Pay. Add the items you wish to purchase to your shopping cart, then tap Check out with Apple Pay. Make sure your total purchase is between $50 and $1,000 and tap Continue.
The Apple Pay screen should then give you the option to pay in full or pay later. Choose the Pay Later tab to use your loan to pay for the purchase in four installments. You will see how much money is due now and how much you will pay over the next six weeks. Tap Continue, then choose Agree & Continue.
Confirm the debit card that will be used to pay off the loan. You can also choose whether or not to use Autopay here. When prompted, double-tap the Side button to approve the payment. The transaction will then be processed, followed by a thank you message when it goes through.
View Your Apple Pay Later Loan and Payments
After you’ve made your first purchase using Apple Pay Later, you can check the status of the loan. Open the Wallet app and tap the Pay Later card to see the total payments due and how much is due in the next 30 days.
The Upcoming Payments section shows the name of the merchant for your current payment plan. Tap the merchant name to see the total paid and remaining amount. You can also select Total Cost to see the total amount of the purchase and loan.
If you tap Autopay, you can see the details of your debit card and turn off Autopay if you’d rather pay off each amount manually.
If you want to pay the next payment early, tap the Pay Now button on the merchant screen and select Pay to pay the next installment or Other Amount to manually add how much you want to put down toward the loan. Double-tap the Side button to verify the payment.
If something goes wrong with a particular payment, select that payment and tap Report an issue Select the issue and a text will be sent to Apple support.
When the entire amount is paid off, the Purchases section in the Pay Later screen will show the number of completed loans. Tap Complete to see the name of the merchant, and tap that name to see the entire payment schedule.
You can request another loan if you’ve already paid off the previous one. At the Pay Later screen, tap New Purchase Amount and enter the amount you wish to receive. Tap Continue at the Payment Plan Example screen, and your new loan should then be approved and processed.
How to Get Help or Remove Pay Later
If you bump into any general problems with Apple Pay Later, tap the Info icon at the Pay Later screen to start a chat or phone call with support, or head to the support website.
If you no longer wish to use Pay Later, tap Remove Card. If you still have outstanding payments, you’ll receive email notifications reminding you when to pay each amount that's due.