Apple is working on a new service that will allow users to pay for goods via Apple Pay in installments over time.
The Cupertino company will offer the service for all purchases made via Apple Pay, not just Apple products, which could prove to be a big hit to competing services like PayPal’s Buy Now, Pay Later, and Klarna.
Apple will partner with Goldman Sachs as part of the installments plan, with the banking giant serving as the lender for the loans needed. Apple already has a relationship with Goldman Sachs for its Apple Card, and sees this as an extension of its new venture into financial services. It’s thought that users won’t need an Apple Card to take advantage of the buy now, pay later feature in Apple Pay – instead, they’ll be separate but limited to the US.
The company is also working on a new Apple Pay in 4 feature, which allows users to pay in monthly installments over four months. Users will be able to choose any credit card to make a payment, though it’s unclear what the interest rates will be. However, Apple and Goldman Sachs are likely to offer a very competitive rate in the US.
It’s thought that users won’t suffer late fees or processing fees, and Apple plans to roll out this feature later in the year to encourage consumers to use their iPhones to pay for goods rather than their credit cards.
As with all new Apple services and features, there’s no guarantee that this will launch, but as the company looks to further diversify its revenue streams, it makes sense that the service will come sooner rather than later.
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