Apple is planning to launch its own ‘buy now, pay later’ service allowing users to pay for any Apple Pay purchase in a number of instalments.
According to Retail Gazette, the ‘Apple Pay Later’ functionality will be added to the Apple Pay ecosystem in the near future, offering anyone using the service the option to pay for their purchase in four interest-free payments made every two weeks, or across several months while paying interest.
According to close unnamed sources, the service will be available both in store and online, while customers will be able to use any credit card to repay month instalments.
The scope of potential adoption is massive, with around 85 per cent of US retailers currently accepting Apple Pay, which is available on all iPhone devices, owned by around 50 per cent of UK smartphone users.
Unlike BNPL incumbents such as Afterpay and UK market leader Klarna, Apple Pay Later will not require running a credit check on users. Instead Apple Pay Layer will require users to be previously approved via an application submitted through the iPhone Wallet app, in which they’ll need to submit a copy of their ID card.
It will also offer users the ability to exit payment plans by paying off the remaining balance, while some plans will exclude late fees and processing fees.