According to Bloomberg, Apple is working on a new pay later feature that will allow customers to pay for ApplePay purchases in installments over time.
Apple Pay purchases will be eligible for installment payments, and the feature will not be limited to Apple products.
The service is comparable to Paypal’s Buy Now, Pay Later offering, and it’s dubbed ApplePay Later.
For the Apple Card credit card, Goldman Sachs will serve as the loan lender.
Users using Apple Pay would be able to divide their payments into four interest-free installments or spread them out over several months with interest.
Apple Pay Later subscribers will have to be accepted via a request made using the Wallet app on the iPhone, since that is where payments will be processed, just like with the Apple Card.
A credit check will not be required as part of the service.
Late fines and processing costs will be waived on some Apple Pay Later plans, leaving consumers to pay only interest on longer-term plans.
Apple is betting that the buy now, pay later mechanism would boost Apple Pay adoption and entice iPhone owners to pay for things using their phones rather than credit cards.
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