(13 July 2021 – Global) Apple is working with Goldman Sachs to develop a buy now, pay later service that lets customers pay for their Apple Pay purchases in instalments, according to Bloomberg.
Dubbed Apple Pay Later, the service will use Goldman Sachs as the lender to cover the instalments, says Bloomberg, citing sources.
The BNPL play will be available for all Apple Pay purchases made with any card and not just linked to the Apple Card, for which Goldman is also a partner.
The service puts Apple in direct competition with a host of firms – including PayPal and Affirm – that have thrived in the fast-growing BNPL market over the last few years.
When making an in-store or online purchase through Apple Pay, customers will be given the option to spread the cost across four interest-free payments made every two weeks. Alternatively, customers can pay over several months but will be charged interest.
Customers will need to apply to use the service through the iPhone Wallet app but will not be subject to credit checks, says Bloomberg.
Meanwhile, Apple is also exploring the introduction of temporary, digital Apple Pay Later cards for one-off purchases.