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Apple Wallet Updates: Apple Pay Later, Tap to Pay on iPhone and More

Apple announces some updates to Apple Wallet that could make things easier when you're shopping online and in-store.

Seven iPhones showing cards and digital IDs
More states are starting to accept ID cards through Apple Wallet.
Apple/Screenshot by James Martin/CNET

This story is part of WWDC 2022, CNET's complete coverage from and about Apple's annual developers conference.

Apple wants to replace more than just your physical wallet with Apple Wallet. Apple announced on Monday at its 2022 Worldwide Developers Conference some updates to Apple Wallet that could make using the app easier and more widespread, including the introduction of Apple Pay Later, a Klarna-style buy-now-pay-later system.

"Apple Pay Later lets you split the cost of an Apple Pay purchase into four equal payments spread over six weeks with zero interest and no fees of any kind," Corey Fugman, senior director of Apple Wallet and Apple Pay, said at the conference. "Upcoming payments are managed through Wallet, making it easy to keep track of what's due when and to stay within a budget."

Apple Pay Later will work through your standard Apple Pay. Users will have to connect a debit card to their account for the feature to work. Loans through the feature will have zero interest, and there won't be any late or convenience fees, either.

Apple Pay Later will be available to purchase items online and in apps that accept Apple Pay. The feature reportedly won't cost developers or merchants any extra. Apple Pay Later will be available in the US on iOS 16 and iPadOS 16 in late 2022.

Apple will reportedly handle all lending through Apple Pay Later itself rather than through an outside financial institution, according to Bloomberg

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Starting in June, Apple Pay users will also be able to pay merchants with contactless pay. Merchants don't need any additional hardware or payment terminals either.

"Tap-to-pay on iPhone enables small merchants and large retailers to use iPhone to securely accept payments," Fugman said. 

Corey Fugman in front of a screen with the message "Four equal payments, Zero interest and no fees, Everywhere Apple Pay is accepted" on it

Corey Fugman explaining Apple Pay Later.

Apple/Screenshot by James Martin/CNET

You can also now track your order through Apple Pay -- no more searching through your email for the tracking number of an order. Fugman said Shopify will be the first e-commerce platform to use this new feature, but "millions of merchants" will have access to it, too.

Fugman also said that more states are working through the process to accept ID cards through Apple Wallet. Arizona and Maryland already accept ID cards through Apple Wallet, and a few Transportation Security Administration checkpoints accept ID cards through Apple Wallet as well. 

Apple announced some new privacy features for ID cards within Apple Wallet. Fugman said now, if you need to verify your age with someone that accepts ID cards via Apple Wallet, you can set your ID card to say you're "over 21," and keep your full birth date hidden.

Sharing digital keys will also be easier, Apple promised. You'll be able to use messaging apps like Mail, Messages and WhatsApp to send digital keys to others, even people who don't have an iPhone. 

"We are seeing tremendous enthusiasm from our partners with more of them signing on just four keys for all the places you visit," Fugman said.

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