Apple Working on ‘Apple Pay Later’ Feature With Monthly Installments for Apple Pay Purchases

Apple is developing a new pay later service that will let customers pay for Apple Pay purchases in installments over time, reports Bloomberg. Installment payment options will be available for all ‌Apple Pay‌ purchases, with the feature not limited to Apple products.


The service is similar to Paypal’s Buy Now, Pay Later feature, and internally, it’s being called “‌Apple Pay‌ Later.”

Apple is planning to partner with Goldman Sachs on the ‌Apple Pay‌ installments plan, with Goldman Sachs serving as the lender for the loans needed for the monthly installment plans. Apple currently works with Goldman Sachs on the Apple Card, but the new installment plan option is not limited to the ‌Apple Card‌ and will not require users to have an ‌Apple Card‌ to use the feature. According to Bloomberg, when a user makes a purchase using ‌Apple Pay‌, they will be able to pay for it across four interest-free payments made every two weeks or across several months with interest.

The four payment play is called “‌Apple Pay‌ in 4” internally, while the longer-term payment plans are dubbed “‌Apple Pay‌ Monthly Installments.” Users will be able to choose any credit card to make their payments over time with the ‌Apple Pay‌ Later plan, and it is not yet clear what interest rates will be.

As with the ‌Apple Card‌, ‌Apple Pay‌ Later users will need to be approved through an application submitted through the Wallet app on the iPhone, which is also where payments will be managed. The service will not require a running credit check. Some of the ‌Apple Pay‌ Later plans will exclude late fees and processing fees, costing users only interest for the longer-term plans.

Apple is hoping the buy now, pay later system will increase ‌Apple Pay‌ adoption and persuade ‌iPhone‌ users to use their ‌iPhone‌ to pay for items instead of standard credit cards. According to Bloomberg, the service is still in development and features could be changed or canceled before it launches.

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