Apple Pay

Apple Pay is a mobile payment and digital wallet service by Apple Inc. that allows users to make payments in person, in iOS apps, and on the web. It is supported on the iPhone, Apple Watch, iPad, and Mac.

Apple Pay uses the NFC chip located in iPhones and Apple Watches to make payments in person in retail stores. These devices require the user to use the Touch ID or Face ID feature on the phone and continual skin contact on the Apple Watch to confirm the user is making the in-person purchase. To help keep customer information private (including credit card numbers), Apple uses tokenization to prevent secure information to be sent over the air and confirms the ability for the user to make the purchase. Physical purchases using Apple Pay can be done at any store accepting contactless payments.

For online or one-tap purchases, Apple Pay allows users to make quick online payments with participating websites and participating devices. This extends the same security Apple Pay offers for physical purchases to online purchases. And in 2017, Apple enabled person-to-person payments through Apple's Messages app on the iPhone and Apple watch. Using Apple Cash, users are able to send money to other iPhone users in the United States.

In 2023, Apple introduced an update to its Apple Pay service: Apple Pay Later. This offers a chance for users to split purchases into four payments spread over six weeks, with no interest and no fees. Further, users can track, manage, and repay Apple Pay Later loans through the Apple Wallet. The Apple Pay Later loans range from USD$50 to $1000, which can be used for online and in-app purchases made on iPhone or iPad and at merchants that accept Apple Pay.

Apple has noted that the option is designed for users' financial health, and this is why the company decided to introduce the program with no fees or interest. Users interested in using Apple Pay Later can apply for a loan through Apple Wallet, where they are prompted to enter the amount they want to borrow and Apple performs a soft credit pull to ensure the applicant is in good financial position before taking on the loan.

When paying back the loan, users can receive notifications through the Apple Wallet and their email to help them plan, and they are only able to pay from a linked debit card. Apple does not accept credit cards for repayment; with financial health in mind, Apple does not allow users to take on more debt to pay back the Apple Pay Later loans. Apple Pay Later is enabled through Mastercard's Installments program, with Goldman Sachs acting as the issuer of the Mastercard payment credential, and offered through Apple's Apple Financing LLC, a subsidiary of Apple Inc. that handles the credit assessment and lending.