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Apple rolling out Apple Pay Later for short-term, no-interest, no-fee loans

Apple unveiled its new short-term, no-interest payment program Apple Pay Later on Tuesday, giving Apple Pay users a new way to manage their finances. File Photo by John Angelillo/UPI
1 of 2 | Apple unveiled its new short-term, no-interest payment program Apple Pay Later on Tuesday, giving Apple Pay users a new way to manage their finances. File Photo by John Angelillo/UPI | License Photo

March 28 (UPI) -- Apple unveiled its new short-term, no-interest payment program Apple Pay Later on Tuesday, giving Apple Pay users a new way to manage their finances.

Apple Pay Later allows users to break their purchases down into four payments over the course of six weeks for purchases, a press release from the tech company said. It can be used for online purchases and in-app purchases where Apple Pay is accepted. Payments come with no interest and no fees.

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"Apple Pay Later was designed with our users' financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions." Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, said in a statement.

Users must apply for Apple Pay Later loans of $50 to $1,000. Some users will be invited to get an early preview of the service in a "prerelease version" of Apple Pay Later. If accepted, Apple Pay Later becomes available in Apple Wallet. It may be used on iPhone or iPad.

Applying for Apple Pay Later will not affect a user's credit score, Apple said. The program will be operated by Mastercard.

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"More transparent and flexible payment options that can displace credit cards are good for consumers -- especially when they have no late or hidden fees," a spokesperson for financial technology company Affirm told CNBC.

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