Apple Pay WebpageSource: Apple

What you need to know

  • Apple is working on a new service internally called 'Apple Pay Later.'
  • The new service would allow Apple Pay users to pay over time for their purchases.

As reported by Bloomberg Law, the new service, known internally as 'Apple Pay Later,' would allow anyone who makes a purchase with Apple Pay to increment their payments over time. According to the report, the service would work for all Apple Pay purchases - even those made with something over that Apple Card.

Apple Inc. is working on a new service that will let consumers pay for any Apple Pay purchase in installments over time, rivaling the "buy now, pay later" offerings popularized by services from Affirm Holdings Inc. and PayPal Holdings Inc.

The upcoming service, known internally as Apple Pay Later, will use Goldman Sachs Group Inc. as the lender for the loans needed for the installment offerings, according to people with knowledge of the matter. Goldman Sachs has been Apple's partner for the Apple Card credit card since 2019, but the new offering isn't tied to the Apple Card...

Delayed payment options have been growing in popularity over the last few years with services like Paypal and Affirm, which enable smaller businesses to offer financing options without the need for their own internal credit card or financing program. I personally used Affirm when buying my new couch and it was admittedly a great experience.

Apple is already working with Goldman Sachs on its Apple Card credit card, so Goldman would be the obvious partner to launch a new financing program like this. Apple has touted the bank's willingness to take a new approach to a credit card so it appears that it may be willing to do the same on a financing program.

It's also unclear exactly how this might work. Will it literally work on ALL Apple Pay purchases, regardless of the amount and card used? While using 'Apple Pay Later' on a coke from Sheetz seems insane, it will certainly be a solid option for larger purchases that would usually be financed with a credit card. If Apple does it right, it could bring a ton of interest rate competition to the credit card industry which has enjoyed inflated interest rates for years now.

Apple Card

Apple Card

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Bottom line: It's odd reviewing a credit card, but the truth is, Apple Card really is something different.

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