Apple is developing a new "buy now, pay later" service that'll let customers pay for Apple Pay purchases on an installment basis over time, Bloomberg reported Tuesday.
The service, dubbed Apple Pay Later, will use Goldman Sachs as the lender, unidentified sources told the news agency. Goldman Sachs has partnered with Apple on its Apple Credit credit card since 2019, but the new service isn't tied to the card, Bloomberg reported.
Similar to Apple Card monthly installments, which allow customers to pay off a purchase over a 24-month period, the new service will let Apple Pay users pay off purchases by way of a monthly financing plan. Users will be able to choose between paying for purchases across four interest-free payments made every two weeks or across several months with interest, Bloomberg reported.
The installment plans would compete with similar systems offered by Affirm, Klarna and PayPal.
Goldman Sachs declined to comment. Apple didn't immediately respond to a request for comment.