Apple Inc. is reportedly making a play in the “buy now, pay later” space that will allow consumers to pay for any Apple Pay purchase through a series of installments over time. If successful, the upcoming service, coined as Apple Pay Later, will rival BNPL services popularized by Affirm, Paypal and Klarna.
According to people with inside knowledge of the matter, Goldman Sachs Group will act as the lender for loans needed in the installment offerings and Apple will receive a percentage of transactions made with Apple Pay.
When a purchase is made via Apple Pay on an Apple product, consumers will have the option to pay for it either across four interest-free payments made every two weeks (internally called Apple Pay in 4), or across several months with interest (dubbed Apple Pay Monthly Installments), an inside source told Bloomberg news.
With the BNPL tech users can choose to make payments with the credit card of their choice for both retail an online store purchases.
Currently, Apple offers a similar payments options on its own products, however, this technology will span for anything purchased via Apple Pay. There is room for liability on Apple’s side as users must be approved via an application through the iPhone wallet app, however, the service will not require a running credit check.
There has yet to be any word on the interest fee charges associated with the Apple Plan.