Apple (NASDAQ) is expected to soon launch its buy now-pay later product (BNPL) as it expands the service to a broader beta group. According to a report filed by Bloomberg, Apple Pay Later is being tested in-house by its approximately 80,000 or so retail employees. Announced last summer, in typical fashion, Apple is taking its time in releasing a new service that pushes the tech firm deeper into Fintech. As was previously reported, the BNPL product will be managed by Apple but advised by Goldman Sachs (NYSE:GS) – the firm that powers the successful Apple Card. Apple Pay Later will allow users to choose to pay over a six-week period of time minus any fees or interest charges.
Perhaps more interesting is the indication that Apple will add a longer-term product providing credit that includes an interest rate charge as Apple establishes itself as a consumer lender. The report has dubbed this service as Apple Pay Monthly, which will be provided in partnership with Goldman Sachs.
As a tech firm that already offers a very popular digital wallet and digital credit card, as well as peer-to-peer payments, the tech stack already has solid insight into a users ability to pay and receive credit. The push into Fintech makes quite a bit of sense as consumers are looking to utilize fewer digital products – not more – and this applies for financial services.
Apple will also offer a savings type service, again in partnership with Goldman Sachs, that will allow users to earn interest on cash held in the Apple digital wallet.
Can you say the Bank of Apple? What’s next for the iPhone creator, perhaps securities investments and wealth management? Makes sense.