Report: Apple working on new financing service called 'Apple Pay Later'

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.

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.