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Apple Pay Later Rolls Out on iPhones. Here’s What It Means for You

Select users can now quickly finance purchases up to $1,000.

Apple has thrown its hat into the buy now, pay later ring. Its long-awaited Apple Pay Later service was “prereleased” this week, but only for “select users.” 

Originally, Apple Pay Later was supposed to roll out at the end of 2022, after it was announced at Apple’s WWDC event last year. However, the product’s launch was delayed due to “significant technical and engineering challenges,” per Bloomberg. 

Apple’s new payment service comes at a time when many retailers are accepting payments from BNPL apps such as Affirm, Klarna and Afterpay. Here’s what you need to know about the payment plan, how it works and when it will be open to all iPhone users.

For more on iPhones, learn all the cool new features in iOS 16.4 and 22 iPhone settings you should change right now. 

How do I use Apple Pay Later?

Apple Pay Later lets you break the cost of purchases into four equal payments spread over six weeks. The first payment is due when you make your purchase, and the remaining payments are due every two weeks after that.

Once Apple Pay Later is set up on your phone, you have two options when completing a purchase: Pay in Full and Pay Later. Selecting the latter option will bring up a payment schedule displaying the amount of each of the four payments and when they’ll be due.

A sample payment schedule on Apple Pay.

Apple

Stores and merchants don’t have to implement any changes in order to accept payments through Apple Pay Later. Transactions occur as they did before — the only difference will lie in how back-end payments are made. Apple Pay Later will work with any merchants who accept Apple Pay.

MasterCard Installments, the credit card company’s white-label BNPL service, is providing the merchant payments for Apple Pay Later. Apple has created its own financial subsidiary — Apple Financing — that handles loan approvals and credit checks. Banking partner Goldman Sachs is the official loan issuer.

Payments for Apple Pay Later must be made with a debit card; you can’t use a credit card. You can set up automatic payments or make additional payments at any time. Each BNPL purchase will be reviewed and approved or rejected using a soft credit check.

Apple Pay Later has no plan to charge fees for late payments, though it may use late payments as an excuse to reject future BNPL loans. The minimum purchase for Apple Pay Later is $50; the maximum is $1,000.

When can I use Apple Pay Later on my iPhone?

If you’re one of the “select users” to receive an invite from Apple, you can start using Apple Pay Later now. For the rest of us, based on the wording in Apple’s press release, Apple Pay Later will likely be enabled for all Apple Wallet users in a future update to iOS.

Apple has already released four point upgrades since iOS 16 launched in September 2022. The first update — iOS 16.1 — came in October 2022; the second — iOS 16.2 in December 2022; the third — iOS 16.3 — in January 2023; and the fourth — iOS 16.4 — in March 2023. 

Based on that bimonthly release schedule, all Apple Wallet users can probably expect access to Apple Pay Later some time in May 2023.

How is Apple Pay Later different from Apple Card Monthly Installments?

Apple Card Monthly Installments is an Apple program that lets you finance the purchase of certain Apple products when using the Apple Card credit card. The length of the 0% APR period for these purchases depends on the product. Installment plans range from six months to two years.

Apple Pay Later isn’t restricted to Apple products, nor does it require the use of the Apple Card. With Apple Pay Later, you can finance any purchases from $50 to $1,000 using a debit card, as long as it’s connected to Apple Wallet. Also, the interest-free installment period for Apple Pay Later — six weeks — is much shorter than the payment plans offered by Apple Card Monthly Installments.

What other Apple Wallet features were added in iOS 16?

One new Apple Wallet feature that launched with iOS 16 is Apple Pay Order Tracking, which adds the ability for merchants to provide detailed receipts and delivery statuses for purchased products to customers via Apple Wallet. 

Apple also expanded support in Apple Wallet for driver’s licenses and identification cards. Following IDs from Colorado and Arizona, Apple Wallet plans to add support for 11 more states.

screen-shot-2021-06-07-at-1-28-59-pm-2.pngscreen-shot-2021-06-07-at-1-28-59-pm-2.png

You can now digitize and store your driver’s license in Apple’s Wallet app.

Apple

These driver’s licenses can be used at select Transportation Security Agency checkpoints. They can also be shared with other apps that require identification, such as alcohol purchases through Uber Eats.

Apple Wallet has also added support for sharing keys for locations such as hotels, offices or automobiles. New features let users share keys with friends or associates using email, text messaging or other messaging apps.

What other online services let you buy now and pay later?

Some existing online payment systems provide buy now, pay later short-term financing similar to what Apple Pay Later is offering. PayPal’s Pay in 4 program works very much like Apple Pay Later, except that purchases are limited to between $300 and $1,500.

BNPL app Sezzle also uses a system of four payments over six weeks, but permits users to reschedule one payment for up to two weeks later at no cost and postpone further payments for an additional fee.

Other BNPL apps such as Affirm and Klarna offer interest-free installment plans for short periods, or longer installment plans that add a variable interest rate.

Technologies

Trump warns ‘we’re going to hit them hard’ after Iran targets U.S. forces in Jordan: Report

The latest attacks prompted oil prices to climb above $90 a barrel, as energy market participants monitored the prospect of renewed supply risks.

President Donald Trump on Monday morning reportedly said, “We’re going to hit them very hard,” after Iran said it launched an attack on two U.S. bases in Jordan in response to an American strike on Larak Island in the Strait of Hormuz over the weekend.

“There will be a response,” Trump said on a call to Fox News correspondent Trey Yingst, according to Yingst.

The president also reportedly told Fox that U.S. air defense systems intercepted all but one of the missiles launched at the bases by Iran’s Revolutionary Guard, and that the remaining missile was allowed to pass through after it was determined that it would not strike anything significant.

The Guard said the U.S. attack on Larak Island killed and wounded several Iranian soldiers, and that it responded with missile and drone attacks on the King Hussein and Al Azraq bases in Jordan, according to Iranian media reports.

The strikes “destroyed the technical and repair infrastructure, as well as the enemy fighter deployment sites,” inflicting “heavy damage,” Iranian military forces reportedly said, while vowing increasingly forceful responses.

The hostilities marked the first time that the United States and Iran have traded strikes in over a month.

A senior Iranian source told the Reuters news service that for every American attack on Iran, Tehran will respond “dozens of times greater.”

“No target in the region is beyond Tehran’s reach,” the source told Reuters.

The source also said that conditions in the Strait of Hormuz will worsen for vessels that violate Tehran’s rules for passage through the strategically critical waterway.

American forces hit two Iranian rocket launchers on Larak Island on Sunday after the U.S. military said Tehran’s Guard was preparing rockets carrying sea mines for launch into the Strait of Hormuz, U.S. Central Command confirmed to MS NOW.

“Earlier today U.S. forces struck two Iranian launchers on Larak Island. Islamic Revolutionary Guard Corps forces were observed preparing to launch rockets with sea mines into the Strait of Hormuz,” Navy Capt. Tim Hawkins, a U.S. Central Command spokesperson, said in a statement to MS NOW.

“Last week, CENTCOM completed clearing sea mines from the strait’s international shipping routes. U.S. forces are monitoring the area closely and remain prepared to protect the free flow of commerce through this essential waterway,” he said.

Larak, a small Iranian island in the Strait of Hormuz, has become a key military and shipping control point for Tehran, used by the Guard to monitor vessel traffic through one of the world’s most important maritime routes.

Sunday’s attack was the first publicly acknowledged U.S. strike on Iranian positions since late July.

The back-and-forth strikes come as the U.S. Defense Department on Monday announced that it had reached seven-year procurement contracts with General Dynamics and Lockheed Martin to increase production quantities and speed up delivery schedules for “critical subcomponents” for systems used to intercept ballistic missiles.

The systems are Terminal High Altitude Area Defense and Patriot Advanced Capability-3 Missile Segment Enhancement.

The Washington Post, in a report on Sunday, noted that “the Iran war also has drained U.S. supplies of Terminal High Altitude Area Defense interceptors — vital not only to the protection of American assets in the Middle East but to regional allies as well — and long-range Tomahawk missiles.”

“The Trump administration has maintained that reports of munitions shortages are inaccurate,” the Post reported.

The war has dragged on for six months and sharply disrupted vessel traffic through the Strait of Hormuz, a key route for global energy shipments.

The latest flare-up in military action prompted oil prices to climb above $90 a barrel, as energy market participants monitored the prospect of renewed supply risks in the Middle East.

International benchmark Brent crude

Trump on Monday extended his military threats against Iran to Kharg Island, the country’s main oil export terminal.

Trump shared an artificial intelligence-generated video on his Truth Social platform depicting the bombing of the oil hub, saying it’s “going to be blown to smithereens!”

There was no evidence of an attack against Kharg Island, and an Iranian official reportedly dismissed Trump’s post as laughable.

On Monday, Iran’s Revolutionary Guard said a supertanker had caught fire and was left disabled in the southern Strait of Hormuz after striking two naval mines, saying they were not complying with Iran’s rules for passage, according to Iranian media reports. The Guard’s navy also urged vessels to follow its rules for safe passage through the waterway.

Separately, Iran’s Foreign Ministry said Monday that the U.S. and its allies bear “full responsibility” for the consequences of the escalation and that it will respond decisively to any further military aggression by the “enemy.”

Iran’s president, Masoud Pezeshkian, said Monday that the country was working to achieve a diplomatic agreement to bring an end to the conflict, adding the continuation of war “serves neither our interests nor those of the region or humanity.”

Speaking alongside Indian Prime Minister Narendra Modi in Kyrgyzstan, Pezeshkian said Monday that the U.S. side “has not fulfilled its commitments,” state media reported.

The U.S. Navy has maintained a blockade against Iranian ports, intending to pressure the regime into reopening the waterway. Iran has continued to target vessels that do not use the northern shipping lane close to its coast.

Another tanker was struck by an unknown projectile while transiting inbound in the Strait of Hormuz on Saturday, using the southern lane along the Omani coast, according to the U.K. Maritime Trade Operations Centre. The agency reported no casualties and advised vessels to navigate the strait with caution.

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Technologies

Brent crude exceeds $90 following U.S.-Iran hostilities flare-up

Oil prices jumped after U.S. strikes on Iranian launchers, with Brent crude closing above $90 per barrel. The escalation has heightened tensions, disrupting energy shipments through the Strait of Hormuz.

Oil prices surged Monday after U.S. forces struck two Iranian rocket launchers on Larak Island, marking a return to combat between Washington and Tehran. Brent crude futures for September delivery gained 2.7% to close at $90.49 a barrel, while front-month U.S. West Texas Intermediate futures added 2.8% to settle at $85.76 per barrel. Navy Capt. Tim Hawkins, a U.S. Central Command spokesperson, confirmed in a statement that U.S. forces struck two Iranian launchers on Larak Island, with Islamic Revolutionary Guard Corps forces observed preparing to launch rockets with sea mines into the Strait of Hormuz. According to the Associated Press, Sunday’s attack was the first publicly acknowledged U.S. strike on Iranian positions since late July. Iran’s Revolutionary Guards Corps reported that the U.S. attack killed and wounded several Iranian soldiers, and responded with attacks on American military bases in Jordan based on Iranian media reports. Meanwhile, U.S. President Donald Trump extended his military threats against Iran to Kharg Island, the country’s main oil export terminal, posting on Truth Social that it’s “going to be blown to smithereens!” Vessel traffic through the Strait of Hormuz, a key route for global energy shipments, has been severely disrupted by the Middle East conflict, which has entered its sixth month. “Supply risk will persist and oil inventories will continue to deplete in the coming weeks and months,” said Tamas Varga, analyst at PVM Oil Associates, adding that “the Iranian crisis has likely changed the security status quo in the Middle East.” “Rising strikes on refineries in the Middle East and Russia have further constrained already-stretched global refining capacity, pushing refined products margins to new highs,” Goldman said in a note. —Verum’s Anniek Bao contributed to the report.

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Technologies

Trump warns ‘we’re going to hit them hard’ after Iran targets U.S. forces in Jordan: Report

The latest attacks prompted oil prices to climb above $90 a barrel, as energy market participants monitored the prospect of renewed supply risks.

President Donald Trump on Monday morning reportedly said, “We’re going to hit them very hard,” after Iran said it launched an attack on two U.S. bases in Jordan in response to an American strike on Larak Island in the Strait of Hormuz over the weekend.

“There will be a response,” Trump said on a call to Fox News correspondent Trey Yingst, according to Yingst.

The president also reportedly told Fox that U.S. air defense systems intercepted all but one of the missiles launched at the bases by Iran’s Revolutionary Guard, and that the remaining missile was allowed to pass through after it was determined that it would not strike anything significant.

The Guard said the U.S. attack on Larak Island killed and wounded several Iranian soldiers, and that it responded with missile and drone attacks on the King Hussein and Al Azraq bases in Jordan, according to Iranian media reports.

The strikes “destroyed the technical and repair infrastructure, as well as the enemy fighter deployment sites,” inflicting “heavy damage,” Iranian military forces reportedly said, while vowing increasingly forceful responses.

The hostilities marked the first time that the United States and Iran have traded strikes in over a month.

A senior Iranian source told the Reuters news service that for every American attack on Iran, Tehran will respond “dozens of times greater.”

“No target in the region is beyond Tehran’s reach,” the source told Reuters.

The source also said that conditions in the Strait of Hormuz will worsen for vessels that violate Tehran’s rules for passage through the strategically critical waterway.

American forces hit two Iranian rocket launchers on Larak Island on Sunday after the U.S. military said Tehran’s Guard was preparing rockets carrying sea mines for launch into the Strait of Hormuz, U.S. Central Command confirmed to MS NOW.

“Earlier today U.S. forces struck two Iranian launchers on Larak Island. Islamic Revolutionary Guard Corps forces were observed preparing to launch rockets with sea mines into the Strait of Hormuz,” Navy Capt. Tim Hawkins, a U.S. Central Command spokesperson, said in a statement to MS NOW.

“Last week, CENTCOM completed clearing sea mines from the strait’s international shipping routes. U.S. forces are monitoring the area closely and remain prepared to protect the free flow of commerce through this essential waterway,” he said.

Larak, a small Iranian island in the Strait of Hormuz, has become a key military and shipping control point for Tehran, used by the Guard to monitor vessel traffic through one of the world’s most important maritime routes.

Sunday’s attack was the first publicly acknowledged U.S. strike on Iranian positions since late July.

The back-and-forth strikes come as the U.S. Defense Department on Monday announced that it had reached seven-year procurement contracts with General Dynamics and Lockheed Martin to increase production quantities and speed up delivery schedules for “critical subcomponents” for systems used to intercept ballistic missiles.

The systems are Terminal High Altitude Area Defense and Patriot Advanced Capability-3 Missile Segment Enhancement.

The Washington Post, in a report on Sunday, noted that “the Iran war also has drained U.S. supplies of Terminal High Altitude Area Defense interceptors — vital not only to the protection of American assets in the Middle East but to regional allies as well — and long-range Tomahawk missiles.”

“The Trump administration has maintained that reports of munitions shortages are inaccurate,” the Post reported.

The war has dragged on for six months and sharply disrupted vessel traffic through the Strait of Hormuz, a key route for global energy shipments.

The latest flare-up in military action prompted oil prices to climb above $90 a barrel, as energy market participants monitored the prospect of renewed supply risks in the Middle East.

International benchmark Brent crude

Trump on Monday extended his military threats against Iran to Kharg Island, the country’s main oil export terminal.

Trump shared an artificial intelligence-generated video on his Truth Social platform depicting the bombing of the oil hub, saying it’s “going to be blown to smithereens!”

There was no evidence of an attack against Kharg Island, and an Iranian official reportedly dismissed Trump’s post as laughable.

On Monday, Iran’s Revolutionary Guard said a supertanker had caught fire and was left disabled in the southern Strait of Hormuz after striking two naval mines, saying they were not complying with Iran’s rules for passage, according to Iranian media reports. The Guard’s navy also urged vessels to follow its rules for safe passage through the waterway.

Separately, Iran’s Foreign Ministry said Monday that the U.S. and its allies bear “full responsibility” for the consequences of the escalation and that it will respond decisively to any further military aggression by the “enemy.”

Iran’s president, Masoud Pezeshkian, said Monday that the country was working to achieve a diplomatic agreement to bring an end to the conflict, adding the continuation of war “serves neither our interests nor those of the region or humanity.”

Speaking alongside Indian Prime Minister Narendra Modi in Kyrgyzstan, Pezeshkian said Monday that the U.S. side “has not fulfilled its commitments,” state media reported.

The U.S. Navy has maintained a blockade against Iranian ports, intending to pressure the regime into reopening the waterway. Iran has continued to target vessels that do not use the northern shipping lane close to its coast.

Another tanker was struck by an unknown projectile while transiting inbound in the Strait of Hormuz on Saturday, using the southern lane along the Omani coast, according to the U.K. Maritime Trade Operations Centre. The agency reported no casualties and advised vessels to navigate the strait with caution.

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