AppleThe company is developing a new service that allows consumers to repay Apple Pay expenses in installmentsTo compete with the buy-and-pay service of Affirm Holdings Inc. And PayPal Holdings Inc.
The upcoming service, known internally as Apple Pay Later, will use Goldman Sachs, according to people familiar with the matterThe group acts as a lending bank for installment payments. Goldman Sachs has been a partner of Apple Credit Card since 2019, butThe new product has nothing to do with Apple credit cards and does not need to use Apple credit cards, according to people familiar with the matter.
“The "pay-as-you-go" service may help promote the popularity of Apple Pay and persuade more users to use iPhone to pay for goods rather than standard credit cards.. Apple will get a percentage of the Apple Pay deal, bringing more revenue to the company's services business, which earns more than $50 billion a year.
One of the people familiar with the matter said the service is currently planned to work: when users shop through the Apple Pay on their Apple devices, they can choose to pay in four interest-free installments (every two weeks) or in multi-monthly installments with interest. Four interest-free installments are internally called "Apple Pay in 4", while longer-term payment plans are called "Apple Pay Monthly Installments".
When shopping through the "Apple Pay Later" program, users will be able to choose any credit card for future repayment. The service is planned to be used for retail or online shopping. Apple already offers monthly installments for Apple products with Apple credit cards, but the new service will extend the technology to any Apple Pay transaction.
Apple's new service is still under development and its features may be changed or cancelled, according to people familiar with the matter. Spokesmen for Apple and Goldman Sachs declined to comment.