Apple Pay is one of the most successful services for the company and the “buy now, pay later” option may soon be available to users. According to Bloomberg, Apple is now expanding testing of the service to its store associates, indicating a release to the general public is a drag.
With Apple Pay Later, customers can split an Apple Pay purchase into four installments that are paid in six weeks with no interest or fees. Apple Pay Later is backed by a new Apple subsidiary called Apple Financing LLC, which means that Apple handles the loans itself.
Apple’s decision to create its own financing subsidiary is interesting because it aligns with Apple’s evolving business practice of developing its own processes, parts and services rather than relying on partners. The biggest example of this is with its processors, which use its own silicon in its devices rather than relying on Intel or Samsung. Apple is also working on its own Wi-Fi chip and cellular modem, but its development has run into several roadblocks.
Apple introduced Apple Pay Later at WWDC last year and was set to release it with iOS 16 this past September. According to Bloomberg, Apple delayed service to work out “technical challenges” with its new internal financial platform.
Bloomberg also reported that an Apple Pay Monthly plan is in the works, with interest accruing over several months. Apple Pay Monthly has yet to be officially announced and is being developed with Goldman Sachs, the Apple Card partner company. It’s unclear if the Goldman Sachs partnership will exist if and when Apple Pay Monthly launches, or if Apple will move to its Apple Financing subsidiary.