Apple Pay Later's challenges could delay launch to early 2023

Posted:
in iOS edited September 25
Apple Pay Later may not arrive until 2023, a report claims, with technical problems getting in the way of Apple formally launching the installment payment service.




Apple announced Apple Pay Later as part of WWDC 2022, with it being a feature of its existing Apple Pay payments platform. While the service stands to be beneficial to consumers, it may not go live before the end of 2022.

In his "Power On" newsletter for Bloomberg, Mark Gurman reports Apple added a message to the small disclaimer text at the bottom of the iOS 16 page about the feature. According to the text, Apple Pay Later is "coming in a future update for qualifying applicants in the United States for purchases online and in apps on iPhone and iPad. May not be available in all states."

Gurman highlights that Apple is careful about the wording, with Apple Pay Later the only one among half a dozen features listed as coming later that doesn't have a timeframe. All of the other delayed features are listed as coming "later this year."

This careful language leads Gurman to think Apple doesn't know when Apple Pay Later will be prepared for launch to the public. After hearing of "fairly significant technical and engineering challenges in rolling out the service," Gurman reckons it may not launch properly until iOS 16.4 in the spring of 2023.

Once it eventually launches, Apple Pay Later will split the cost of a transaction over four payments, over six weeks. The service, financed by Apple itself, will also be provided without fees or commissions.

Read on AppleInsider

Comments

  • Reply 1 of 10
    rob53rob53 Posts: 3,060member
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    watto_cobragrandact73
  • Reply 2 of 10
    XedXed Posts: 1,526member
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    Everything I've read indicates a technical issue, but I'm not sure what that could be since they already do 12 and 24 months via Apple Pay without issue. I wonder if longer system is using a 3rd-party backend's and this will be a homegrown solution to further make them independent with financial solutions.
    watto_cobra
  • Reply 3 of 10
    Xed said:
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    Everything I've read indicates a technical issue, but I'm not sure what that could be since they already do 12 and 24 months via Apple Pay without issue. I wonder if longer system is using a 3rd-party backend's and this will be a homegrown solution to further make them independent with financial solutions.
    I may be entirely incorrect on this but isn’t the financing done via AppleCard and not ApplePay in general? Like I can finance a purchase via the Apple online store with my AppleCard but not with my Bank of America card even though I can use Apple Pay with both.  If I’m getting that right then the “technical” challenges could be width getting whatever account management software up and running since that would all be new vs. using Goldman’s solution. One would assume building the entire system could be a bit more difficult than integrating with an existing one. 

    IDK, it’s all wiled speculation at this point. It’s my favorite kind of speculation. 
    watto_cobra
  • Reply 4 of 10
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    The article says “technical and engineering” which doesn’t sound like a  governmental roadblock. 
    watto_cobra
  • Reply 5 of 10
    macguimacgui Posts: 2,245member
    Whenever APL arrives, it will make playing in the Walled Garden a little more palatable. Apple increases prices, but offer an no interest/no fee payment plan to take some of the sting out of buying.

    It's an interesting structure though, four payments over six weeks. It would benefit those getting paid weekly the most and those paid bi-weekly second. Those paid monthly would get a slight break. Timing a purchase might extend that break over one more paycheck.
    watto_cobra
  • Reply 6 of 10
    XedXed Posts: 1,526member
    Xed said:
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    Everything I've read indicates a technical issue, but I'm not sure what that could be since they already do 12 and 24 months via Apple Pay without issue. I wonder if longer system is using a 3rd-party backend's and this will be a homegrown solution to further make them independent with financial solutions.
    I may be entirely incorrect on this but isn’t the financing done via AppleCard and not ApplePay in general? Like I can finance a purchase via the Apple online store with my AppleCard but not with my Bank of America card even though I can use Apple Pay with both.  If I’m getting that right then the “technical” challenges could be width getting whatever account management software up and running since that would all be new vs. using Goldman’s solution. One would assume building the entire system could be a bit more difficult than integrating with an existing one. 

    IDK, it’s all wiled speculation at this point. It’s my favorite kind of speculation. 
    Yes, I did mean Apple Card, not Apple Pay. So that likely via GS, which might be why this 6 week payment plan might not be with GS and why it might be a technical hurdle as Apple learned to do this in-house.
    edited September 25 watto_cobra
  • Reply 7 of 10
    Buy now pay later is a stupid idea

    i hope they scrap it
  • Reply 8 of 10
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    The article says “technical and engineering” which doesn’t sound like a  governmental roadblock. 
    The language in the notice which says may not be available in all states says to me its a state government issue. 

  • Reply 9 of 10
    XedXed Posts: 1,526member
    Madbum said:
    Buy now pay later is a stupid idea

    i hope they scrap it
    How is it stupid? The use of credit probably makes up most Apple sales already, they've had their iUP program for around a decade now, they now let you buy Apple products with 12 and 24 months loans with an Apple Card, and nearly everyone (at least in the US) does this for automobiles and homes. The concept of buying now and paying later is not going away.
  • Reply 10 of 10
    Xed said:
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    Everything I've read indicates a technical issue, but I'm not sure what that could be since they already do 12 and 24 months via Apple Pay without issue. I wonder if longer system is using a 3rd-party backend's and this will be a homegrown solution to further make them independent with financial solutions.
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.
    rob53 said:
    PayPal already has this feature so I have to wonder what governmental organization is causing Apple problems.

    they can’t make this type of Loan in California.  They have to obtain a license in a California to offer these types of buy now pay later transactions as the state regulatory agency Department of Financial Protection and innovation considers them to be loans. They have to apply for and receive a license for this activity in CA. You may ask how do I know??? Because I worked for the agency and was the supervisor over the program that licenses lenders in CA. That agency has been going after many buy now pay later companies who are operating in CA without obtaining a license first. 

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