Apple Develops PayPal Competitor Pay Later Features

Apple began to develop Apple Pay which could be a tough competitor to Paypal. (photo: Apple via The Verge)

JAKARTA - Like online shopping platforms, Apple is reportedly working on the Pay Later feature to make it easier for users to shop for Apple products with payments that can be made at a later date.

Interestingly, this feature will run without requiring users to have an Apple Card. The technology giant from Cupertino, USA is also working with Goldman Sachs by developing every transaction in Apple Pay into "buy now, pay later."

As reported by Bloomberg, Wednesday, July 14, to make it easier for users, the Pay Later feature seems to work like payments on e-commerce platforms. Possibly, users will be charged an initial payment to get the product, after which they can be paid in installments through payment platforms, such as PayPal, Affirm, or Klarna.

Apple's move by presenting this feature will of course make the company a direct competitor to many platforms that already provide similar services. The application of the Pay Later feature is also not only limited to Apple's online stores, the company will also implement it in physical stores.

Apple will provide buyers with the option of an installment payment mechanism, where users can pay in four interest-free installments over two weeks if they choose Apple Pay in 4, or pay installments for several months with interest if they choose Apple Pay Monthly Installments.

Interestingly, this feature does not require a credit history obtained by someone to be able to buy a product. The company also does not impose a late payment penalty.

However, it is not yet known when Apple will launch this feature. On the one hand, with the Pay Later feature, Apple is re-assessed to expand its strategy to gain profits on product sales by locking someone in a debt installment scheme.