Initially available only in the US, Apple Pay Later will allow iPhone and Mac users to split purchases using Apple Pay over four equal payments in a six-month period, with no interest and fees.

The move is a direct challenge to fintech companies like Klarna and Affirm, FT reports – and comes as BNPL providers struggle with the post-pandemic decline in ecommerce and rising inflation and interest rates.

Apple was previously reported to be working with Goldman Sachs on the feature.