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It's described on the iOS 16 features page under Apple Pay and Wallet heading: https://www.apple.com/ios/ios-16/. You'll only see the options during checkout apparently, not something I want to test at the moment.
Thanks for pointing me to this page. I see they had a footnote attached to it. It’ll be launched in a future update.
 

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"future update" blah
it wasn't even mentioned at their event last week. Only thing I can think is that it has to do with iPadOS delay.
 
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I tend to think it has more to do with banking/credit regulations in whichever states may not allow it, based on that same footnote referenced above about possibly "not being available in all states" (below). There are many search results indicating a problem because of the lack of Buy Now Pay Later (BNPL) regulations.

"Coming in a future update for qualifying applicants in the United States for purchases online and in apps on iPhone and iPad. May not be available in all states." (https://www.apple.com/ios/ios-16/)
 
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