Apple has revealed it will be launching its own buy now, pay later platform, Apple Pay Later, at its recent Worldwide Developer Conference. But with almost 30 platforms available for Australians right now, how does it stack up against the competition

Apple Pay Later will initially be limited to United States customers with the goal of expanding to more regions. Australians can prepare themselves now to know whether the platform may suit their financial needs when it does hit our shores.

Introduced as part of Apple’s iOS 16 operating system, Apple Pay Later will let customers split up the cost of eligible transactions into four instalments across six weeks. This is a similar model to that of buy now, pay later (BNPL) Australian juggernaut, Afterpay.

At this point, Apple is advertising that its Apple Pay Later platform will come with no interest and no fees “of any kind”. It is unknown whether it will reveal it charges fees for late payments like many other platforms, but currently Apple Pay Later has no fees associated with it.

While Apple Pay Later currently advertises that it will not charge interest or fees of any kind, customers may need to expect that credit checks may occur. It states that access to the platform is “subject to eligibility checks and approvals”, presumably with its own internal risk assessment engine.

And it’s worth keeping in mind that earlier this year, Apple acquired UK-based open-banking credit reference agency, Credit Kudos Ltd. This may indicate that it intends to use credit bureaus or credit checking agencies when approving customers for this new, credit side of the company.

Comparing popular BNPL platforms available in Australia

BNPL providerWhere you can use itPayment scheduleMax credit limitAccount feesLate feesCredit checks
Apple Pay LaterWherever Apple Pay is accepted4 instalments over 6 weeks

Unknown

No interest or account fees.NoUnconfirmed.
AfterpayAffiliated retailers4 instalments over 6 weeks

$2,000

No interest or account fees.$10 per missed payment, extra $7 if not paid in 7 days, capped at 25% of the price or $68, whichever is lower.No
BundllAnywhere Mastercard is usedRepay within 2 weeks. Extend up to 12 weeks for feeBetween $1K- $4KNone for basic bundle. 2-wk extension is $2.50, 12 week plan is 5%.$10 late payment fee then account is suspended.No check for standard bundle. Yes for superbundll.
CBA StepPayAnywhere Mastercard is used4 instalments over 6 weeks

$1,000

No interest or account fees.$10 per missed payment, capped at $120 per year. Account suspended till there is enough available funds in your repayment account.Yes, and customers’ bank accounts are checked.
KlarnaAffiliated retailers4 fortnightly payments over 6 weeks.

$1,000

$0 for standard plans.$0 - $3 per late payment depending on purchase size. Max $9 per purchase.Yes
LatitudePayAffiliated retailers10 weekly payments

$1,000

None

$10

Yes
LaybuyAffiliated retailers6 weekly repaymentsUndisclosedNone$10/late payment. Extra $10 if not paid in 7 days.Yes
OpenPayAffiliated retailersfortnightly repayments up to 24 months depending on size of purchaseUndisclosed$0 to $5 per fortnight depending on value of purchase and length of plan$9.50 per missed payment if not paid in 2 days. Total fees capped at $200 in first year and $125 in subsequent years.May do credit check.
PayPal Pay in 4Anywhere PayPal is accepted4 instalments over 6 weeks

$1,500

NoneNoneMay do credit check.
Zip PayAnywhere Visa is acceptedMin $40/month$1K - $1.5K$7.95/month if you have money owing.$5 after 21 days of not paying the minimum.Yes

Source: RateCity.com.au. Figures based on BNPL platforms in Australia as of 25/05/2022.

So, how does Apple Pay Later stack up?

Until it is officially launched with the rollout of the iOS 16 operating system, it’s hard to explore too many details about this BNPL platform. But, if you’re a big fan of using Apple Pay, and you currently use an existing Australian BNPL platform, it may be worth considering the convenience of having these transactions all within the Wallet app.

Further, if there are absolutely no interest charges or fees of any kind, it may be a more affordable BNPL platform than some of the big-name alternatives that may charge fees upwards of $50.

However, if you struggle to gain approval for credit products, it’s worth assessing whether Apple Pay Later will require hard credit enquiries when you apply. You may find that your application is rejected if you struggle with poor credit, and additional rejections and further hurt your credit score.

To compare buy now, pay later platforms currently on offer in Australia, please visit our helpful comparison page to see how different options stack up in terms of credit limits and payment frequencies.