Apple is currently looking to expand its Apple Pay service by adding a new feature that would allow users to pay for purchases they make with Apple Pay in installments over time.
The company is working on two different payment options; one where you’d pay the amount back in full with four payments interest-free and one where you can make monthly payments with interest.
According to a new report from Bloomberg, the company is partnering up with Goldman Sachs to provide financing for this new service. The two companies are already familiar with each other. They’ve been partnered together since 2019 with the Apple credit card.
However, this new service isn’t tied to the Apple credit card whatsoever. Instead, this is a feature that all iPhone users will take advantage of using Apple Pay. The new feature will be available both online and at retail locations where Apple Pay is accepted.
So how would the new Apple Pay feature work?
This all-new feature from Apple is set to rival similar options from companies like Affirm and PayPal. According to the Bloomberg article mentioned above, internal testing shows this new feature working in one of two ways.
The first way would go as follows: Once you make a purchase using Apple Pay, you will have the option to pay the transaction off in four total payments, one every two weeks. This method has you pay off the purchase in eight weeks without any interest.
The other method would include long-term payments plans where you’d pay for the transaction in monthly installments. This method, known internally as “Apple Pay Monthly Installments,” would include interest at a rate that is still unknown.
Of course, this new feature is still very early in development and currently going through internal testing, so there’s no way of knowing when or even if this feature could be coming for Apple users. However, one thing is for certain: This new feature will make Apple Pay much more appealing to a lot more people.
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