Apple continues to surprise its users with credit options. After the success of the Apple Card, the company is now working on a new service that will allow consumers to pay for any Apple Pay purchase in installments over time. According to information shared from Bloomberg, the service will be called Apple Pay Later.
The Apple Apple Pay Later option: buy now, pay later will use Goldman Sachs Group Inc. as the lender for the loans necessary for installment offers. Goldman Sachs has been Apple’s partner for the Apple Card credit card since 2019, but the new offering is not tied to the Apple Card and does not require the use of one, anonymous sources said.
How does Apple Pay Later work?
As has been known so far, Apple Pay Later will allow users to make a purchase through Apple Pay on their Apple device, with the option to pay for it through four interest-free payments made every two weeks or for several months with interest, upon request in the iPhone Wallet app. The plan with four payments is called “Apple Pay in 4” internally, while longer-term payment plans are called “Monthly Apple Pay Fees.”
The credit offering could help drive adoption of Apple Pay and convince more users to use their iPhone to pay for items instead of standard credit cards. And without a doubt, increase the profits for this type of services. Currently, Apple receives a percentage of transactions made with Apple Pay, generating additional revenue for the company’s services business of more than $ 50 billion annually.
Until now, the service is planned to be available for purchases made in retail stores or online. Apple already offers monthly installments through the Apple Card for purchases of its own products, but this service would expand that technology to any Apple Pay transaction.