Apple reportedly engaged on purchase now, pay later service with Goldman Sachs

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Apple CEO Tim Cook attends the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 8, 2021.

Kevin Dietsch | Getty Images

Shares in Affirm, a company that provides credit services to retailers, fell up to 16% on Tuesday after Bloomberg reported that Apple plans to partner with Goldman Sachs to offer a competing “buy now, pay later” product.

Afterpay, an Australian company that also offers installment payments for products, fell over 5% in the report. It is traded over the counter in the USA

The report is the latest sign that Apple is looking to offer additional financial services through its wallet app, Apple Pay payment service, and partnerships with financial services companies. Buy Now Pay Later products enable consumers to buy an expensive product and pay for it over several months.

The best-known financial product from Apple to date is the Apple Card, a credit card that is accessed via the iPhone’s wallet app. Goldman Sachs takes care of the back-end and credit card portions of the product, which allows them to get into consumer banking quickly through Apple’s sizeable user base. Apple and Goldman Sachs declined to comment.

Apple previously offered monthly installments without interest for some of its products purchased with an Apple Card through the Apple Store. Apple Card holders can, for example, buy an iPhone in 24 monthly installments, whereby the payments in the Wallet app are bundled with the minimum credit card payment.

“One of the things we do is to make it easier for people to get this kind of monthly funding,” said Apple CEO Tim Cook in 2019 when the program was launched.

In May, Apple posted a job looking for a negotiator to work with payment partners, citing BNPL experience as a plus.

– CNBC’s Hugh Son contributed to this report.

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