Apple exploring ‘Apple Pay Later’ service that lets users pay off Apple Pay purchases in monthly installments
Apple is reportedly working on a new service internally named ‘Apple Pay Later,’ which would allow users to pay for Apple Pay purchases in monthly installments, according to Bloomberg.
In a report on Tuesday, Mark Gurman claims Apple is looking to rival similar services offered by the likes of PayPal, which let users spread the cost of purchases over a set period. The service, which Gurman says is currently in development, would see Goldman Sachs Group Inc., who handles the financial side of Apple Card, as the lender for the loans needed for the installment offerings, citing people familiar with the plans, which are said to be still subject to change and/or cancellation.
Gurman’s report claims the buy now, pay later service is planned to be available for purchases made at either retail or online stores, with Apple hoping the new offering will boost Apple Pay adoption.
The scheme is said to not require users to sign up for an Apple Card.
The service is currently planned to work as follows: When a user makes a purchase via Apple Pay on their Apple device, they will have the option to pay for it either across four interest-free payments made every two weeks, or across several months with interest, one of the people said. The plan with four payments is called “Apple Pay in 4” internally, while the longer-term payment plans are dubbed “Apple Pay Monthly Installments.”
Bloomberg notes that to use the service, users would need to be approved via an application submitted through the Wallet app on iPhone, where they will also be able to manage their payments and have the option to pay off the remainder of their purchase balance early to exit the finance agreement.