Apple is developing a new pay later service that will let customers pay for Apple Pay purchases in installments over time. Installment payment options will be available for all Apple Pay purchases, with the feature not limited to Apple products.
The service is similar to Paypal’s Buy Now, Pay Later feature, and internally. It’s being called Apple Pay Later. Apple is planning to partner with Goldman Sachs on the Apple Pay installments plan, with Goldman Sachs serving as the lender for the loans needed for the monthly installment plans.
Apple currently works with Goldman Sachs on the Apple Card. But the new installment plan option is not limited to the Apple Card and will not require users to have an Apple Card to use the feature. When a user makes a purchase using Apple Pay, they will be able to pay for it across four interest-free payments. Made every two weeks or across several months with interest.
Users will be able to choose any credit card to make their payments over time with the Apple Pay Later plan. Apple Pay Later users will need to be approved through an application submitted through the Wallet app on the iPhone.
Which is also where payments will be managed. Some of the Apple Pay Later plans will exclude late fees and processing fees. Costing users only interest for the longer-term plans.