Apple today announced Apple Pay Later, allowing select Apple Pay customers in the U.S. the ability to split purchases into four payments, spread over six weeks with no interest and no fees.

Apple Pay users in the U.S. will be selected at random to participate in the Apple Pay Later program according to an Apple. Users who gain access will have the option to apply for Apple Pay Later loans of between $50 to $1,000 according to the press release. The loans can be used online and for in-app purchases made on iPhone and iPad with merchants that accept Apple Pay. Apple clarified that some merchants may not be eligible to offer Apple Pay Later at launch.

Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet had the following to say regarding the new loan service:

“There’s no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later. 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, VP President of Apple Pay and Apple Wallet

Chief Correspondent for Bloomberg, Mark Gurman, took to Twitter calling the new rollout strategy “strange”:

According to Apple, Apple Pay Later will enable users to apply for a loan within the Wallet app with no negative impact to their credit. However, upon a purchase, a user’s Apple Pay Later loan and payment history may be reported to credit bureaus and impact their credit according to the fine print.

Built on the same secure foundation as Apple Pay, users will use Face ID and Touch ID to approve payments. Apple Pay Later is offered by Apple Financing LLC, which is a subsidiary of Apple Inc. The firm is responsible for credit assessment and lending, and Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus beginning this fall.

Apple Pay Later is supported through the Mastercard Installments program, which allows merchants that accept Apple Pay to implement Apple Pay Later for their customers with virtually zero friction.

Apple first previewed Apple Pay Later nearly a year ago at WWDC 2022. Backend references to Apple Pay Later and its imminent launch were recently highlighted by @aaronp613 on Twitter:

In order to become eligible for random selection and test Apple Pay Later, users must be at least 18 years old. The user must also reside in the U.S. and own an iPhone or iPad running iOS 16.4 or iPadOS 16.4 and later. Users located in Hawaii, Nevada, New Mexico, North Carolina, Wisconsin, or any US territories are curiously ineligible for Apple Pay Later at this time. Apple Pay customers living in Alabama must be at least 19 years old in order to access the service. It is important to note that Apple Pay Later does not require Apple Card, offering eligibility upon random selection to users who use Apple Pay with any compatible debit or credit card.