There’s something to be said for paying over time.
Apple is apparently developing a new service that will allow Apple Pay users to buy products and pay them off in monthly installments. Per Bloomberg, this featureis in development and internally named ‘Apple Pay Later’.
However, Apple’s service would be directly integrated with Apple Pay. Apple is said to be partnering with Goldman Sachs on the new scheme. Goldman Sachs already serves as the backing bank behind the Apple Card.
The feature sounds similar to a program currently available to Apple Card users. With Apple Card Monthly Installments, Apple Card owners can already buy iPhones and other Apple devices with 0 percent financing over 24-months.
The Apple Pay Later scheme would expand the market, and not require Apple Card ownership. In short, Apple would allow users to easily purchase goods with Apple Pay and have the purchase go on a monthly financing plan. Goldman Sachs will be the underlying lender of the loans for the instalment plans.
The report also indicates that customers will have to apply and be approved via an application process in the Wallet app.
The article stated that both interest-free and interest-accumulating plans will be available:
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.
Stay tuned for additional details as they become available.