Apple and Goldman working on checkout loan product to compete with Affirm, reports say

Apple and Goldman Sachs are reportedly developing a service called Apply Pay Later to rival ‘buy now, pay later’ (BNPL) offerings from firms like Affirm and Afterpay. Amid news of the possible Goldman-Apple BNPL tie-up, share prices of Affirm and Afterpay took a hit.

Why should we care?
Apple and Goldman currently partner on the Apple credit card. With Apple Pay Later, Goldman would be the lender behind the product, which wouldn't be dependent on customers having an Apple credit card. While Apple’s possible foray into the BNPL space may worry some prominent players in that space – including Affirm, Afterpay, Klarna, and PayPal – it could potentially help drive up addition for Apple Pay. And being available widely on customer’s phones could make it appear more accessible than many other tools available. Users will need to apply for eligibility through an app, and a hard credit check is not expected to be carried out. The report suggested Apple is also testing the capability to create temporary, digital Apple Pay Later credit cards for purchases. Rumors of Apple Pay Later build on Apple's efforts to bolster its internal payments capabilities. A May job posting, for example, sought talent in the realm of digital wallets, fast payments, cryptocurrency, and BNPL programs.