Apple Planning ‘Purchase Now, Pay Later’ Service in Partnership With Goldman Sachs: Report

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Apple is engaged on a service that may let customers pay for any Apple Pay buy in instalments, Bloomberg Information reported on Tuesday, sending shares of Afterpay and different ‘purchase now, pay later’ (BNPL) corporations sharply decrease.

Apple will use Goldman Sachs, its current companion since 2019 for the Apple Card bank card, because the lender for the loans, Bloomberg reported, citing folks conversant in the matter.

Afterpay slid near 10 p.c quickly after markets in Australia, the place most BNPL corporations are listed, opened on Wednesday. Zip and Sezzle additionally fell sharply. Affirm Holdings tumbled greater than 14 p.c on Tuesday earlier than closing down 10.5 p.c.

The BNPL trade has boomed over the previous 12 months on account of a pandemic-driven surge in on-line procuring that has additionally attracted the eye of mainstream corporations resembling PayPal.

The prospect of going up towards Apple, a worldwide tech large with an enormous money pile, in addition to different probably entrants levies a serious take a look at to pure-play BNPL corporations which have thus far gone largely unchallenged.

The Bloomberg report mentioned Apple Pay customers can be allowed to separate their funds into 4 interest-free instalments, or throughout a number of months with curiosity.

A Goldman Sachs spokesperson declined to remark. Apple was not instantly out there for remark.

The potential providing will rival related companies by Klarna, Afterpay, Zip’s Quadpay and Affirm in the US, the sector’s key progress market the place competitors is intense.

PayPal launched its BNPL service in Australia on Wednesday, taking the combat to Afterpay on its dwelling turf the place the US funds large mentioned it will put off late charges, an space that earned Afterpay near AUD 70 million (roughly Rs. 390 crores) in fiscal 2020.

© Thomson Reuters 2021


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