Apple and Goldman Sachs join forces to take on Klarna with Buy Now Pay Later

By Daniel Lanyon on Wednesday 14 July 2021

Alternative LendingDigital Banking

The two companies have since 2019 previously collaborated on the Apple Card, a high tech credit card available only in the US.

Apple and Goldman Sachs join forces to take on Klarna with Buy Now Pay Later
Image source: Photo by Adrianna Calvo from Pexels

Apple and Goldman Sachs are joining forces to offer a Buy Now Pay Later function within Apple Pay to iPhone users.

The two firms, which have collaborated for nearly two years on the Apple Card, have according to a report from Bloomberg that has been widely reported elsewhere, will allow users to spread payments across multiple periods when using Apple Pay.

Dubbed Apple Pay Later, the service sounds very familiar to the likes of Klarna and Affirm which has seen soaring demand in Europe, the US and beyond in recent years.

Affirm, one of the few major BNPL firms to be listed, saw an immediate drop in its share price of c.15 per cent following the news yesterday. 

Users will, according to the report be able to spread payments interest-free over four-month periods or apply for interest-bearing credit over the longer term.

The news service, which appears to only being slated to be offered to US consumers initially, demonstrates the long term interest of both firms to expand their reach into the fintech space as well as, for Apple, financial services in general.

Apple launched its Apple Pay business in 2014, which has since grown to be a powerful force globally as well a large revenue driver for Apple.

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