Apple will launch its own 'buy now, pay later' scheme with Goldman Sachs: Report

Apple is reportedly working on a plan to let users pay for purchases in installments over time. For the ‘buy now pay later’ plan, Goldman Sachs Group Inc., as per a report by Bloomberg. Goldman Sachs has been Apple’s partner for the Apple Card credit card since 2019. 

Apple to introduce new buying scheme

Goldman Sachs will grant loans required for the installment offerings but the report said that the new service does not require the use of an Apple Card and is not tied to it. Currently, the company offers monthly installments which can be paid for its products using the Apple Card. Through the new service, people will be able to pay in installments for any Apple Pay transaction.

The report further states that users will be offered two options for making purchases through Apple Pay. The customers will be asked to select between two plans which include paying for several months with interest or making four interest-free payments every two weeks. Reportedly, the initial plan is called Apple Pay Monthly Installments while the second plan has been termed as Apple Pay in 4. The report did not mention the interest rates that Apple planned to charge for the monthly installments. The customers can use any credit card for the Apple Pay Later plan.

The service is planned to be available for purchases made at either retail or online stores. The people who want to avail the Apple Pay Later service can use it through the iPhone’s Wallet app. To apply for the services, users will have to submit a copy of their local ID card. Apple Pay Later users will also have the option to exit payment plans. They can pay off the remainder of their purchase balance. As per the report, the service will also not require running a credit check on the user. 

IMAGE: AP