Apple introduced on Tuesday its Buy Now, Pay Later service in the U.S., a progress in the fintech sector, which dominated by firms like Affirm Holdings and Klarna, the Swedish payments company.
The company said that the service will allow users to split purchases on four payments spread over six weeks with no fees or interest. The service will first be offered to select users with a full roll-out in the coming months.
According to Reuters citing the company, users will get loans between $50 and $1000 for in-app and online purchases of iPads and iPhones with merchants that accept Apple Pay.
The company added that more than 85 percent of US retailers accept Apple Pay.According to the company, users can apply for a loan within the Apple Wallet app without any impact on their credit score.
Once the users select the amount they want to withdraw, a soft credit pull will be conducted to ensure that they are in “a good financial position” to take a loan.
Apple also said that purchases using the software will be authenticated by Touch ID, Face ID, or a passcode.
A spokesperson at Affirm commented on the service saying “more transparent and flexible payment options that can displace credit cards are good for consumers – especially when they have no late or hidden fees.”
