Apple has launched a new service that lets you buy things now and pay for them later. It’s called Apple Pay Later and it works with the Apple Wallet on your iPhone or iPad. Here’s what you need to know about it.

How does Apple Pay Later work?

Apple Pay Later lets you get a loan from $50 to $1,000 and pay it back in four parts over six weeks. You don’t have to pay any interest or fees for this option.

You can apply for a loan within the Apple Wallet without hurting your credit score. But Apple may tell credit bureaus about your loan and payments. That could affect your credit score later.

When you shop online or in apps, you can choose Apple Pay Later at checkout. You can see and manage your loans in the Wallet app. Apple will remind you when you need to pay.

Who can use Apple Pay Later?

Apple Pay Later is not ready for everyone yet. Apple will invite some users to try it first. You need to be in the US and have iOS 16.4 or iPadOS 16.4 to use it.

Why even bother?

Apple has had a credit card with Goldman Sachs since 2019. But this is the first time Apple is doing the lending by itself. Apple has a new company called Apple Financing LLC that does loans for Apple Pay Later.

Apple says it created Apple Pay Later to make shopping easier and more affordable for its customers. It also wants to compete with other buy now, pay later services like Affirm, Klarna and Afterpay.

What are the risks of using Apple Pay Later?

Apple Pay Later may sound like a good deal, but it also has some risks. For example:

• You may spend more than you can afford and get into debt.
• You may miss a payment and get charged a late fee or damage your credit score.
• You may not be able to return or exchange items bought with Apple Pay Later.
• You may not be able to use other payment methods or discounts with Apple Pay Later.