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Apple plans buy now, pay later service Bloomberg

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Reuters Apple Inc is working on a service to let shoppers pay for purchases in instalments, Bloomberg reported, a move that could help the iPhone maker tap into the thriving buy now, pay later sector.

The U.S. tech giant will use Goldman Sachs Group Inc, its partner since 2019 for the Apple Card credit card, as the lender for the loans made through Apple Pay, Bloomberg reported on Tuesday, citing people familiar with the matter.

The service will allow Apple Pay users to pay for their purchases through four interestfree payments made every two weeks or across several months with interest, according to the report.

Apple shares opened 2 higher to hit a record high of 148.48 on Wednesday.

In the United States, Australia and Europe, BNPL is marketed as an alternative to credit cards. The service has soared in popularity during the pandemic as consumers seek other options to make purchases that are easier on their wallets.

However, the prospect of going up against a behemoth like Apple, as well as other entrants including PayPal, is likely to test Australian pureplay BNPL firms that have so far gone unchallenged in a fertile U.S. market.

Shares of Australialisted Afterpay, the countrys biggest BNPL provider which derives a big chunk of its revenue from the United States, dived nearly 10 on Wednesday. Smaller rivals Zip Co Ltd and Sezzle fell sharply.

In the United States, however, shares of Paypal and Affirm recouped some of their losses from Tuesdays fall as some…

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