Bloomberg reports that Apple is working on a new payment feature for Apple Pay. In partnership with Goldman Sachs, the Cupertino tech company is developing an ‘Apple Pay Later’ service that would allow users to pay off items purchased via Apple Pay in monthly installments. Goldman Sachs is Apple’s banking partner for Apple Card.
Integrated with iPhone’s Wallet app, Apple Pay is the company’s contactless payment service which enables users to make quick and easy payments via their smartphone in stores or fingerprint authentication for online purchases. The service is accepted in 85 percent of retailers in the United States and can also be used to send cash to family and friends. Apple Card already offers monthly installment plans and now the feature might be expanded to the payment service.
In partnership with Goldman Sachs, Apple is set to launch an ‘Apple Pay Later’ service
The new installments payment feature will not be tied to Apple Card and would not require its use. As per the report, for ‘Apple Pay Later’ users will be able to choose any credit card for purchases at retail or online stores.the planned feature will offer users two installment payment options:
- “Apple Pay in 4” – four months interest-free payments made every two weeks
- “Apple Pay Monthly Installments” – installments spread across several months with an interest
Prior to using the new payment service, users will have to seek approval first by sending an application with a copy of their ID card via the Wallet app. The company will also give customers the freedom to exit the installments plan and pay off the balance amount in a single payment.
In addition, some of the new payment plans will exclude late and processing fees and will not require users’ credit checks. Furthermore, the company is reportedly testing another feature to allow users to “create temporary digital Apple Pay Later credit cards for individual purchases.” Cupertino tech giant launched the contactless payment service in 2014 and Bloomberg expects the alleged new feature to be a major upgrade for the service.
The buy now, pay later system could help drive Apple Pay adoption and convince more users to use their iPhone to pay for items instead of standard credit cards. Apple receives a percentage of transactions made with Apple Pay, driving additional revenue to the company’s more than $50 billion per year services business.
The new service would mark one of the largest additions to the service since its launch in 2014, following other features like peer-to-peer payments. Apple last year acquired a company that developed technology to allow phones to receive payments by tapping another phone or credit card on its back, adding another potential feature to the Apple payments road map.
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