Apple launches 'buy now, pay later' service in US

APPLE INC on Tuesday launched its "buy now, pay later" (BNPL) service in the United States, a move that threatens to disrupt the fintech sector dominated by firms like Affirm Holdings and Swedish payments company Klarna.

The service, Apple Pay Later, will allow users to split purchases into four payments spread over six weeks with no interest or fees, the company said. It will initially be offered to select users, with plans of a full roll-out in the coming months.

Users can get loans between US$50 and US$1,000 for online and in-app purchases made on iPhones and iPads with merchants that accept Apple Pay, according to the company.