Apple Expands Pay Later Service to All US Users
Apple, Inc (Nasdaq: AAPL) has expanded its “Pay Later” service to all users in the United States, as first reported by MacRumors.
The buy now, pay later offering, first announced in June 2022, allows customers to make purchases and settle the bill in four interest-free installments over a six-week period. Although it was initially launched on select Apple devices in March, it is now widely available within Apple Wallet and prominently featured on Apple’s homepage.
Apple recently removed the reference to a “prerelease version” from its Pay Later support documents, indicating its readiness for a broader release. The description of Wallet on the App Store now includes a mention of Pay Later, a detail absent from earlier versions of the page. However, as of this writing, the company has yet to confirm the official rollout of the service.
Apple’s Pay Later service is made possible through the Mastercard Installments program, with Goldman Sachs (NYSE: GS) acting as the issuer of the Mastercard payment credential used for these purchases. It is uncertain whether Apple will need to seek a new financial partner, as reports suggest that Goldman Sachs is exploring options to exit its credit card and savings account partnership with Apple.
In January, Bloomberg reported that $1.2 billion in pretax losses from just the first three quarters of 2022 are attributed to the digital credit card partnership with Apple.
This expansion of Pay Later provides Apple users in the United States with a convenient and flexible payment option, but how it will affect consumer financial health remains to be seen.
Information for this story was found via MacRumors, Apple, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
