The ‘Apple Pay Later’ function will be an addition to the tech giant’s current Apple Pay offering and will be rolled out as part of its upcoming iOS 16 update.
Built directly into Apple Pay, the update will allow users to pay for purchases in four instalments over six weeks, the company announced June 6.
Bloomberg reported last year that Apple is partnering with Goldman Sachs as the lender for the loans required for its buy-now, pay-later payment (BNPL) plans.
BNPL services have gained wide popularity in recent years. Fintech upstarts like Affirm, Afterpay and Klarna have been able to capitalise on young consumers’ distrust of traditional credit card companies and convince thousands of merchants to pay for their services.
But lingering inflation may be curbing the sector’s growth. Sweden-based Klarna announced last week that it would lay off 700 employees — about 10 percent of its workforce — citing uncertainty caused by war in Ukraine, rising inflation and the possibility of a global recession.
In the US, the largest BNPL player, Affirm, has seen its stock value plummet nearly 75 percent this year.
Paying for purchases in instalments has quickly become ubiquitous online. But Klarna, Affirm and the other fintech players that dominate the space have loftier goals.