Known as "layaway" to those of us who grew up in the '80s, Buy Now Pay Later services are one step better as you get to take the object of your interest home with you right away.
The service has grown tremendously in popularity over the last few years, with 88.2 million people using it in 2023, according to data from Insider Intelligence.
Now, a major change is coming to the service—and while Apple (AAPL) is the first to roll it out, it won't be the last.
Apple officially rolled out “Apple Pay Later”—a way to split up larger purchases into four payments—to all users in the United States in 2023. The technology giant is now partnering with Experian on a move that could benefit consumers.
Apple Pay Later loan information, like the overall purchases and split amount, will now be reported to Experian credit reports, which the credit bureau describes as a “move towards greater transparency” for both sides.
While not applicable to purchases prior, this applies for Apple Pay Later transactions occurring today—Feb. 28, 2024—and on. These purchases appear on your Experian credit report beginning Mar. 1, 2024, with an associated BNPL tag.
Related: Apple Vision Pro review: I spent two weeks with a computer strapped to my face
It will not impact your credit score yet, though: “the information won’t be factored into existing traditional credit scores but may in the future as new credit scoring models are developed,” the release reads. Theoretically, in the future, as these models roll out, this information could be used to provide a more accurate history.
Apple’s VP of Apple Pay and Apple Wallet, Jennifer Bailey, said in the release, “By reporting Apple Pay Later loans to Experian, we aim to help promote greater transparency and responsible lending for both the borrower and the lender, while providing users with the opportunity to further build their credit.”
Apple Pay Later is the first “BNPL” or “Buy Now Pay Later” to be reported in this way and found on credit reports. Experian made it clear in the release that it appreciates Apple being the first but are also conversing with other BNPL platforms.
When you’re making a purchase with Apple Pay on your iPhone or iPad, there is a chance you’ve seen the Apple Pay Later option appear alongside saved cards. It’s eligible for Apple Pay purchases between $75 to $1,000 on nearly all sets that accept the form of payment. The result is then that the amount is split into four smaller payments. When you choose the option, it runs through a brief Apple Financing application that may use a soft credit check to determine eligibility for the loan.
In addition to the formal release from Experian, Apple updated its support documentation around Apple Pay Later, noting this change.
Related: Veteran fund manager picks favorite stocks for 2024
