Apple Pay is one of the company’s most successful services and a “buy now, pay later” option may soon be offered to users. According to Bloomberg, Apple is now expanding its testing of the service to its retail employees, indicating that a release to the general public stands in the way.
Apple Pay Later lets customers split a purchase made with Apple Pay into four installments that are paid over six weeks with no interest or fees. Apple Pay Later is backed by a new Apple subsidiary called Apple Financing LLC, which means Apple handles the loans itself.
Apple’s decision to create its own financing subsidiary is interesting because it fits into Apple’s evolving business practice of developing its own processes, parts and services instead of relying on partners. The biggest example of this is with its processors, using its own silicon in its devices instead of relying on Intel or Samsung. Apple is also working on its own Wi-Fi chip and cellular modem, but the development of these has encountered several obstacles.
Apple showed off Apple Pay Later at WWDC last year and was going to release it with iOS 16 last September. Apple delayed the service to resolve “technical challenges” with its new internal finance platform, according to Bloomberg.
Bloomberg also reported that a monthly Apple Pay plan is in the works, with installments over several months with interest. Apple Pay Monthly has yet to be officially announced and is in development with Apple Card partner Goldman Sachs. It’s unclear if the Goldman Sachs partnership will be in place if and when Apple Pay Monthly launches, or if Apple will move to its subsidiary Apple Financing.
