With Apple Pay Later, Apple can make another attempt at using the PayPal model | GeekComparison

Apple Pay on an iPhone and Apple Watch.
Enlarge / Apple Pay on an iPhone and Apple Watch.


Apple will move beyond traditional technology projects with a new feature the company internally calls “Apple Pay Later,” according to a new report from Bloomberg.

With Apple Pay Later, users who make purchases at retail or online with Apple Pay have the option to pay over time, rather than all upfront. According to the report, customers don’t need Apple Card (the company’s recently launched credit card service) to take advantage of Apple Pay Later.

Apple offers two payment options. “Apple Pay Monthly Termments” allows users to pay off a loan with interest in monthly installments. “Apple Pay in 4” lets users pay for purchases with four interest-free payments every two weeks.

Customers can optionally terminate their payment plans by paying off the amount in full, the report said.

Bloomberg’s sources did not share the interest rate Apple plans to charge, nor did they say whether every user who signs up will be approved. The sources said that users can apply through the Wallet app on their iPhones by sharing a copy of their ID. They also said that a credit check will not be involved in this process.

This new product may seem odd to Apple, but it’s just the latest in a number of the company’s forays into the world of consumer financial products. The most notable project is Apple Card, a digitally managed, contactless credit card.

Furthermore, several competing technology companies already own and operate products similar to Apple Pay Later.

In recent years, Apple has tried to offset declining iPhone sales by introducing new services that increase the lifetime value of its customers. That said, iPhone sales picked up significantly with the launch of the iPhone 12 late last year.

Apple CEO Tim Cook has repeatedly pointed to the company’s services (Apple Card, iCloud, Apple Music) and wearables (Apple Watch, AirPods) as the vanguard for growth at the company.

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