Apple’s new service buy now, pay later allows users to divide their payments into installments, which they can pay over a period of six weeks.
Apple Pay Later, the company’s newest financial service, went live on Tuesday. It gives people the option to pay for their purchases over a period of time. The new service lets people divide up their payments into four installments, which they can pay over a period of six weeks.
Apple Pay Later competes with buy now, pay later companies that have been around for a while, like Affirm and Klarna, which have become more popular with consumers over the last few years. Shares of Affirm fell by 7 percent after the news came out.
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According to the company that makes the iPhone, Apple Wallet users will be able to manage, track, and pay back their loans. People can apply for Apple Pay Later loans ranging from $50 to $1,000 and use them to make in-app and online purchases from stores that accept Apple Pay.
Also, Apple Pay Later loans can be requested through the Apple Wallet without affecting the user’s credit score. When users choose how much money they want to borrow, a soft credit check will be done to make sure they can afford the loan.
Later today, Apple plans to let a few people try out a version of Apple Pay before it’s officially released. The company plans to give access to all eligible users in the coming months.