The service, named ‘’Apple Pay Later’’, is quite similar to Affirm and PayPal’s ‘Pay in 4’ service which enable customers to pay for their purchases in installments over time. Following the news, Affirm’s shares dropped 10%.
In fact, the iPhone-maker already allows Apple Card customers to pay in installments for their iPhone, iPad and Mac purchases. Sources who wanted to remain anonymous said that the company’s now working with American investment banking company Goldman Sachs to bring the feature to Apple Pay.
According to the sources, the Apple Pay Later plan will offer customers two options while making a purchase.
The ‘’Apple Pay in 4’’ option will let them make four interest-free payments every two weeks. In addition, they’ll also be able to pay across several months with interest.
In order to use the new Apple Pay Later service, customers will be required to get approved by submitting a copy of their local ID card using the Apple Wallet app.