Apple Pay Later: How about getting an iPhone and you pay later?

Have you, at any one point, wanted to buy an iPhone but was turned off by the price tag? Well, Apple Pay Later is a new service in the works that will let consumers pay for any Apple Pay purchase in installments over time.

According to Bloomberg, the upcoming “buy now, pay later” will have Goldman Sachs on board as the lender for the loans needed for the installment payments. Goldman Sachs has been Apple’s partner for the Apple Card credit card since 2019. However, the new offering doesn’t require the use of the card.

Apparently, Apple wants to rival the likes of PayPal who already offer the service, and this could help increase the adoption of Apple Pay. Additionally, Apple looks at convincing more of its users to use their iPhone to pay for items instead of standard credit cards as it receives a percentage of transactions made with Apple Pay.

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How will Apple Pay Later work?

So, when a user makes a purchase via Apple Pay on their Apple device, they will have the option to pay for it across four interest-free payments made every two weeks, called “Apple Pay in 4”. Alternatively, they can pay for it across several months in a longer-term payment plan dubbed “Apple Pay Monthly Installments.”

When making purchases through an Apple Pay Later plan, users will be able to choose any credit card to utilize when making their payments over time. The service is planned to be available for purchases made at either retail or online stores. \

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Who can use the Apple Pay Later service?

Users who want to use the Apple Pay Later service will need to be approved via an application submitted through the iPhone’s Wallet app, where they will also be able to manage their payments. Users will need to submit a copy of their local ID card to apply for the program. Apple will also offer customers the ability to exit payment plans to pay off the remainder of their purchase balance.

Apple already offers monthly installments via the Apple Card for purchases of its own products, but this service would expand that technology to any Apple Pay transaction. Key to note is that the Apple Pay Later service is still in development and its features could change or be canceled.

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