The company said that Apple Pay Later will allow users to divide purchases into four payments spread over six weeks without interest or fees. It will be initially offered to select users, with plans to roll it out fully in the coming months.
Users can take out loans of between $50 and $1,000 for online and in-app purchases made on iPhones and iPads with merchants that accept Apple Pay, according to Reuters.
In 2020, pandemic-related lockdowns have shifted shoppers to online payment platforms, boosting demand for BNPL-providing fintechs, especially for millennial and Gen Z customers.
Digital payments giants including PayPal and Block Inc. In this sector through acquisitions, while Affirm has become a public company in the multi-billion dollar list.
The sector’s fortunes have turned around since then as rising interest rates and sharp inflation sapped purchasing power and forced consumers to tighten their financial constraints.
Analyst at DA Davidson, referring to its decision not to use a partner and directly underwrite, fund and collect loans.
Apple Pay Later is enabled through Mastercard’s installments program, the company said, adding that Goldman Sachs was the source of Mastercard’s payment credentials.
WWA