Apple Pay is planning on boosting its services with a new ‘Apple Pay Later’ service in collaboration with Goldman Sachs.
According to a recent Bloomberg report, Apple is working on a new BNPL (buy now, pay later) service for consumers, allowing them to purchase goods and services via Apple Pay online – or in-store – and pay for them in installments.
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The new service hasn’t been announced yet, but according to sources will be called Apple Pay Later, and it will compete against other popular BNPL services from companies like Affirm, Klarna, and PayPal.
According to Bloomberg, to carry through the financial aspects involved – such as money-lending – Apple is partnering with Goldman Sachs. The multinational investment bank and financial services provider has previously been Apple’s choice backing credits on the Apple Card, but apparently, the new service will not be restricted to Apple’s credit card owners only.
Bloomberg also reported that subscribers to the initiative will be able to make purchases online or in-store with automatic payment installments that will work with two eligible options.
The first is “Apple Pay in 4,” which will essentially split the total amount to pay into 4 bi-weekly installments. This will allow users to complete the payment over an 8-week period without incurring additional interest charges or having to pass a credit check.
The second option, dubbed “Apple Pay Monthly Installments” will allow for monthly installments which will be run by Goldman Sachs. This second method will also involve interest and APR charges, as well as credit checks.
The addition of the credit program to the list of increasingly easy to use and virtually frictionless payment methods offered on Apple Pay, will probably further benefit Apple to recruit more customers. Of course, Apple also takes a cut from any translation taking place via Apple pay, adding revenue to its already $50 billion per year big services section.
The unrevealed sources also told Bloomberg that when Apple will roll out the service, it will be available to all Apple users, independently of the fact that they may or may not have signed up for an Apple Card.