Consumers can now use Apple Pay Later, the new feature introduced by Apple, to spread out their payments for purchases.

Apple (NASDAQ: AAPL) has introduced a new feature called Apple Pay Later in the US, allowing users to split their purchases into four payments without any interest or fees. Users can apply for loans ranging from $50 to $1,000 for online and in-app purchases made on iPhones and iPads with merchants that accept Apple Pay.

Users can manage their loans in one place within the Apple Wallet app, where they can easily track and repay them. The feature will be rolled out to all eligible users in the coming months, with select users invited to access a prerelease version. (Apple)

The loan application process is simple and involves a soft credit pull to ensure the user is in good financial standing before borrowing. Users will be asked to link a debit card from their Wallet to repay the loan, and credit cards will not be accepted to avoid users taking on more debt.

At its foundation, Apple Pay Later prioritizes privacy and security, ensuring that users’ transaction and loan history remains confidential and will not be shared or sold to third parties for marketing purposes. Merchants who accept Apple Pay can take advantage of the feature without any additional action as it is facilitated through the Mastercard Installments (NYSE: MA) program.

Apple Financing LLC, a subsidiary of Apple, will conduct credit assessment and lending, and expects to report Apple Pay Later loans to US credit bureaus starting in the fall of 2023.

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