Apple launches buy now, pay later service in US

Apple on Tuesday launched its buy now, pay later service in the US that will allow consumers to pay for purchases over time.

The service, Apple Pay Later, will allow users to split purchases into four payments spread over six weeks with no interest or fees, the company said.

Users can apply for loans between $50 and $1,000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay, according to the company.

Apple Pay is accepted by over 85% of US retailers, the company said.

Buy now, pay later firm Affirm Holdings’ shares fell 2.7%.

Apple Pay Later is enabled through the Mastercard Installments program, the company said, adding that Goldman Sachs was the issuer of the Mastercard payment credential.

The company will begin inviting some users to access a pre-release version of Apple Pay Later, and plans to offer it to all eligible users in the coming months.

The BNPL business model emerged in times of very low interest rates, but the prospect of sustained increases to interest rates has raised concerns for the sector.

Apple announced the pay-later service in June last year.