Apple revealed plans to make it easier to use its iPhone as a payment tool with the launch of several new services at WWDC 2022.
New additions include the highly anticipated Apple Pay Later, part of iOS 16, which allows shoppers to split the cost of a purchase made with their device into four equal payments over six weeks, without incurring interest or late fees.
The company also made it easier to pay in stores with your Apple smartphone by announcing that its Tap to Pay service on iPhone will launch later this month.
apple pay later
"Apple Pay Later offers users in the United States a transparent and secure way to share the cost of an Apple Pay purchase," the company's official press release noted (opens in a new tab).
Integrated with Apple Wallet and available both online and in apps, Apple Pay Later will be available as a payment option in addition to Pay in Full whenever a user pays with Apple Pay or Wallet.
The service is based on the Mastercard network and gives users a clear view of the exact payment amounts expected and when. Users have the option to pay early to pay off a balance if they wish, and Apple says the tool is "designed with users' financial health in mind."
The buy now, pay later (BNPL) market has exploded in popularity in recent years as buyers seek a more flexible way to spread payments, and Apple wants a market share dominated by Klarna and Block (formerly known as Square's name).
Apple Pay Later reports first surfaced in July 2021 (opens in a new tab), with rumors of a partnership with Goldman Sachs, which had been the company's partner for its Apple Card credit card since 2019.
Tap to pay on iPhone
The launch of Tap to Pay on iPhone is also an important show of support for small businesses around the world, enabling thousands of businesses to accept payments through iPhone. Initially only available in the US, Tap to Pay on iPhone uses NFC to securely complete and process transactions, and will work on iPhone XS and newer models.
Apple launched Tap to Pay in February 2022 to enable more businesses to accept Apple Pay and other types of contactless payments, and recently announced a partnership with Square to integrate the service into the latest point-of-sale terminals.