Apple to Launch BNPL Offering

Insiders reveal Apple’s plan to roll out a Buy Now Pay Later feature with Goldman Sachs.


Tuesday, November 2nd, 2021

Apple (NASDAQ: AAPL) and Goldman Sachs (NYSE: GS) are teaming up to provide customers with an easy way to pay for Apple products. The new program is called “Buy Now, Pay Later” and lets consumers buy goods now, but delay payments until months after delivery. It’s the latest example of how tech companies are trying to reinvent personal financing.

The service dubbed “Apple Pay Later” will launch on Apple devices through the Wallet app. Once it rolls out, customers will be able to purchase items and pay in installments over a few months, according to insiders who did not reveal the launch date.

Apple Pay Later will compete against other BNPL services from Affirm, PayPal, Klarna, etc., and serve customers buying items online and in physical stores. 

Users Can Choose Between Two BNPL payment options

According to Bloomberg’s informant, users can opt for one of the two BNPL options:

  • Apple Pay in 4: This option involves paying in four interest-free installments. The payments happen every two weeks.
  • Apple Pay Monthly Installment: Users who choose this plan will be allowed to pay in several months, with added interest. However, the sources did not disclose how much interest Apple Pay Later users will pay through the Monthly Installment plan.

All payments are made through the Wallet app.

The Partnership

Goldman Sachs and Apple have a history. They first collaborated in 2019 to roll out the Apple Card credit card. This time, Goldman Sachs will play the core role of lending the funds needed to support the BNPL model.

Final Words

But while this sounds promising, the project is still in its infancy and may be modified or canceled, the informant clarified.

Apple Card users can already pay for items in installments, but this only applies to purchasing Apple products. If all goes well, the newfangled BNPL feature will extend this offer to all credit cards, as long as a user purchases items through Apple Pay.