Apple launches Buy Now Pay Later service in the US
Apple Inc on Tuesday launched a buy-now-pay-later (BNPL) service in the United States that allows consumers to pay for purchases over time.
The Apple Pay Later service allows users to split purchases into four payments over six weeks with no interest or fees, the company said.
According to the company, users can apply for loans of $50 to $1,000 that can be used for online and in-app purchases made on iPhone and iPad at merchants that accept Apple Pay.
Apple Pay is accepted by more than 85 percent of U.S. retailers, the company said.
Shares of BNPL company Affirm Holdings Inc. fell by 2.7%.
Apple Pay Later is available through the Mastercard Installments program, the company said, adding that Goldman Sachs was the issuer of the Mastercard payment authorization.
The company will begin inviting some users to use the early version of Apple Pay later, and plans to offer it to all eligible users in the coming months.
The BNPL business model was born in times of very low interest rates, but the prospect of a continued rise in interest rates has raised concerns in the industry.
Apple announced the pay later service in June of last year.
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