Apple Inc (NASDAQ:AAPL) has entered the booming 'buy now, pay later' market in the US, letting iPhone owners defer payments in a major challenge to fintech firms such as US group PayPal Holdings Inc, Sweden's Klarna and UK's Revolut.
Apple introduced its 'buy now, pay later' service alongside a software update to iPhones during its Worldwide Development Conference, the company's second major event of the year.
The new payment feature, called Apple Pay Later, is an addition to the Wallet app that users can access whenever they use Apple Pay for a transaction.
The service is part of the company's effort to expand into the finance industry, as well as bring more infrastructure in-house.
"Built into Apple Wallet and designed with users’ financial health in mind, Apple Pay Later makes it easy to view, track, and repay Apple Pay Later payments within Wallet," the company said in a statement.
There was no specific launch date given by Apple, but observers believe the 'buy now, pay later' plan will be available with iOS 16 in the fall.
Apple Pay Later enables US customers to split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with zero interest and no fees, Apple said.
The first payment will be made upfront, with the remainder being made every two weeks.
A growing number of companies like PayPal, Klarna, Block Inc (NYSE:SQ) and Mastercard Inc (NYSE:MA) offer 'buy now, pay later' plans.
As inflation rises, 'buy now, pay later' offer consumers a means to make necessary purchases more easily, though some worry it could lead to a debt spiral as consumers take out yet another loan.
At the conference, it was also announced iOS 16 users will be able to customise the lock screen and download widgets as part of Apple's newest iPhone software.
The iPhone maker also unveiled a new dashboard for cars, including Ford Motor Company (NYSE:F) and Jaguar models, and a wide range of collaboration and data safety features.
A new feature on the Apple Watch was also unveiled at the event, which can detect atrial fibrillation to help with heart health, while with watchOS 9, the device's latest software, users will be able to see at what stage of sleep they are at various times during the night.