The buy now, pay later (BNPL) flex payment solution market may be getting a powerful new participant.
Apple is getting set to launch a BNPL solution connected to its Apple Pay digital payment service, according to Bloomberg. Instead of paying the full price of a purchase outright when checking out with a credit or debit card, BNPL enables shoppers to break the total purchase into smaller payments, often without interest, that can be billed to a personal account.
Going by the internal code name “Apple Pay Later,” the service will reportedly have financing from Goldman Sachs, the issuing bank for the Apple Card digital credit card. However, consumers will not need to hold an Apple Card to use the service, which will be available for online and in-store transactions.
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Bloomberg reports Apple Pay users will have the option to pay for a purchase across four interest-free payments made every two weeks, or over several months with interest, using any credit card of their choosing for the installments. Users will need submit an application via the iPhone Wallet app, including a copy of their local ID card. Apple reportedly hopes to drive adoption of Apple Pay and increase the volume of payments made via iPhones.
Apple and Goldman Sachs declined to comment for the Bloomberg article.