Apple Pay Later could move to the UK

Apple Pay Later could move to the UK - how the US version works

For Apple users the built in Apple Pay has become so ingrained in daily life that many have stopped taking credit cards out with them. Cash has gone the way of the dodo with businesses like Starbucks going completely cashless, solidifying the dominance of digital wallets.

One new feature set to hit iOS users in the next major update is Apple Pay Later, which is set to launch in iOS 16. Essentially this will be a short-term interest free loan from Apple, also known as a ‘buy now, pay later’ scheme, although it is only available in the US to start with.

There is no word yet as to when it will be made available in the UK, assuming it is launched with iOS 16. Apple has said that there is no integration needed with the retailer as it is all done internally through the tech giant so it is only a matter of time.

Working similarly to Klarna or other pay later systems, this would allow users to purchase products online and pay in instalments. In the cost of living crisis, this new feature could give people the flexibility to buy larger or more expensive items without breaking the bank.

Apple’s website reads: “Apple Pay Later lets customers split a purchase into four equal payments over six weeks, with no interest or fees to pay.” A key element of this is that unlike other loans or split payment schemes, there will be no interest added to this.

This means customers will only pay for the price of the item, nothing more so long as they keep up with payments. Apple said: “It’s built into Wallet so customers can easily track what they owe and when they owe it.”

This will only be an option for online purchases where regular Apple Pay can already be used as it runs through the Wallet. It is unlikely this option will become available for in person purchases for the foreseeable future.

So far Apple has not said what will happen if customers fail to meet the four payments or if they are taken automatically from the chosen card. Normally with these pay later systems you will have a late fee or interest added when payments default.

For now, Apple users in the UK will have to watch and wait to see how Apple Pay Later works in the US and hope it becomes available here. Until that time many retailers support sites like Klarna, Clearpay and Laybuy to help spread the cost.

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