Apple Pay Later is coming to Australia, but not as soon as you think

In 2023, Apple’s long-awaited addition to the world of Buy Now Pay Later finally arrived for those living in the USA - but today we have news that Apple Pay will soon integrate with BNPL services in Australia later this year.

Sources from Apple told the Australian Financial Review that "Apple will allow iPhone users to access buy now, pay later-style loans from ANZ directly from Apple Pay – and is open to adding Afterpay and Zip to its popular digital wallet."

So, while this is not the launch of Apple Pay Later per sé, it does mean consumers should be able to access BNPL services via Apple Pay.

With growing scrutiny over the BNPL industry and its potential to create long-term impacts on your credit score, it might be worth taking a look at Apple Pay Later, for when it finally launches in Australia.

What is Apple Pay Later?

Apple’s Pay Later payment platform functions similarly to Afterpay or Paypal Pay in 4, allowing users to split purchases into 4 over 6 weeks. The service, called Apple Pay Later, does not charge interest (making it potentially feel more accessible to many than a credit card) or any joining fees. 

Users are currently only able to use the payment method where Apple Pay is available, and on purchases between the values of $50 and $1,000.

These payments will be linked via Apple Pay to a debit card, with credit cards not being accepted. This is to minimise the risk of people falling into the trap of debt.

How will Apple Pay Later impact my credit score?

Notably, Apple’s announcement at the launch of this product says that Apple Pay Later will be able to “apply for a loan within [Apple] Wallet with no impact to their credit”. This may not mesh with new rules for regulation around BNPL in Australia. 

Thankfully there is clarification that the application process will involve an assessment of creditworthiness, so there will be no applying for the product when you’re drowning in debt. If you comb through the fine print, you’ll also find Apple reporting that “a user’s Apple Pay Later loan and payment history may be reported to credit bureaus and impact their credit”. 

By the time Apple brings their BNPL platform to Australia, we will be able to tell how this product has had an impact on the American market. Hopefully it will be clear how this can be integrated into our market alongside our regulatory requirements.

Keep up to date with all the latest in BNPL news! If you want to know how the platforms stack up, find the best of Buy Now Pay Later.