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

Apple Pay Webpage
Apple Pay Webpage (Image credit: 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.

Joe Wituschek
Contributor

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.

Latest in Apps
WeChat logo on an iPhone
Apple approves WeChat update ahead of iPhone 16 event, but it still wants to negotiate fees
ChatGPT on Mac showing breakfast query
ChatGPT on Mac just got a big update in the EU
Sonos Ray Soundbar
Sonos has delayed products to focus on fixing its app "crisis"
Google Photos Search
Google Photos gets an Apple Intelligence-inspired update to help you find your favorite snaps
The RiotPWR Xbox Cloud Gaming Controller for iOS
Apple's App Store fees make bringing Xbox Cloud Gaming to the iPhone 'impossible'
Verdy Beats Pill Stand
This cute character holds your Beats Pill — and costs $500
Latest in News
iMore Logo
One more thing… Goodbye from iMore
Jony Ive
Jony Ive’s OpenAI hardware device could be his next world-changing design
NEBULA Cosmos 4K SE with Apple TV
This new 4K projector is tempting me to replace my LG C2 TV, just so I can watch Slow Horses on a 200-inch display
VisionOS 2 app reorganization
visionOS 2 is the first major software update for Apple Vision Pro, and now it's available
macOS Sequoia
macOS Sequoia (version 15) is now available for your Mac with some big upgrades
watchOS 11
watchOS 11 is now rolling out to all Apple Watch users with the Series 6 or newer