Apple Reportedly Planning ‘Buy Now, Pay Later’ Service
image source- cnet
Apple is readying a new service that will allow Apple Pay users to buy products and pay them off in monthly installments, rivalling existing monthly payment plan options from the likes of Affirm and PayPal.
The service, dubbed Apple Pay Later, will use Goldman Sachs as the lender, unidentified sources told the news agency. Goldman Sachs has partnered with Apple on its Apple Credit credit card since 2019, but the new service isn’t tied to the card, Bloomberg reported.
Similar to Apple Card monthly installments, which allow customers to pay off a purchase over a 24-month period, the new service will let Apple Pay users pay off purchases by way of a monthly financing plan. Users will be able to choose between paying for purchases across four interest-free payments made every two weeks or across several months with interest, Bloomberg reported.
The installment plans would compete with similar systems offered by Affirm, Klarna and PayPal. Goldman Sachs declined to comment. Apple didn’t immediately respond to a request for comment.
The new Apple Pay Later scheme will not require Apple Card ownership. Essentially, Apple will soon allow users to easily buy anything with Apple Pay and get it on a monthly financing plan. Goldman Sachs will be the underlying lender of the loans for the instalment plans. Affirm’s stock price plummeted more than 10% on the report being published.
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