Is Apple’s Buy Now Pay Later Worth It?


Protect Your Access to the Internet

Apple’s line of innovative consumer products has earned the tech giant a special place in the hearts of millions of fans, but now it’s angling for a similar position in their wallets with the impending launch of its own Buy Now Pay Later (BNPL) service.

The company is now “inviting select users” to use Apple Pay Later, initially announced in June 2022, and the service will roll out to all eligible users in the coming months. The BNPL service offers the option to pay for purchases in four installments with no-interest, similar to popular providers such as Afterpay and Sezzle.

CNBC Select takes a closer look at the new BNPL product by Apple, compares it to similar services and no-interest finance options and evaluates who benefits the most from the latest entrant to the BNPL market.

How does Apple Pay Later work?

Apple Pay Later

  • Interest rates

  • Loan terms

  • Fees

  • Return policy

    If you return any part of your purchase and are eligible for a refund, the merchant will typically notify Apple Pay Later. The refund will be applied to the payments you owe on your loan. If the refund exceeds the remaining loan balance, it may take up to 5 days to appear on your debit card account.

  • Available merchants

    Apple Pay is accepted at over 85% of retailers in the U.S.

  • Loan amounts


  • Doesn’t charge any late fees
  • Only a soft credit check required
  • Doesn’t charge any interest on purchases


  • Only offers one short-term credit option so it’s not a good option if you need a longer term
  • Only invited users can currently use the service

Randomly selected Apple users can apply for a loan using their Apple Wallet app and divide a purchase into four equal payments. Applying only results in a soft credit check, meaning there won’t be a hard inquiry to affect your credit.

Available loan amounts range from $50 to $1,000. The service spreads the amount over four interest-free installment payments: you’ll make the first payment when you buy the item and pay off the rest over six weeks, with each payment due every two weeks.

If you have been invited to try Apple Pay Later, you can get started by applying for a loan in your Wallet app. You’ll need to enter the amount you want to borrow and agree to the terms and conditions. At this…