Apple is reportedly developing a new “pay later” service that will allow Apple Pay customers to pay for their purchases in installments over time. The option will be available for all Apple Pay purchases, not just purchases of Apple products.
Bloomberg reports that the service is similar to Paypal’s Buy Now, Pay Later feature, and internally, it’s being called “Apple Pay Later.” Apple is planning to partner with Goldman Sachs on the Apple Pay installments plan.
The upcoming service, known internally as Apple Pay Later, will use Goldman Sachs Group Inc. as the lender for the loans needed for the installment offerings, according to people with knowledge of the matter. Goldman Sachs has been Apple’s partner for the Apple Card credit card since 2019, but the new offering isn’t tied to the Apple Card and doesn’t require the use of one, said the people, who asked not to be named discussing unannounced products.
The report says that when a user makes a purchase using Apple Pay, they will be able to pay for it across four interest-free payments made every two weeks or across several months with interest.
The four payment play is called “Apple Pay in 4” internally, while the longer-term payment plans are dubbed “Apple Pay Monthly Installments.” Users will be able to choose any credit card to make their payments over time with the Apple Pay Later plan.
Apple Pay Later users will need to get approval via an application submitted through the Wallet app on the user’s iPhone. Payments will also be managed through the Wallet app. Some of the Apple Pay Later plans will exclude late fees and processing fees, costing users only interest for the longer-term plans.
Apple is aiming to increase Apple Pay adoption by using the buy now, pay later system, spurring more iPhone users to use their devices to pay for items instead of using a standard credit card. Bloomberg says Apple is still developing the service, and features could be changed or dropped completely before it launches.