Bloomberg News reported, citing people familiar with the matter.
The service, known internally as Apple Pay Later according to the report, will rival buy now, pay later services from Affirm Holdings and PayPal that have recently become popular.
The new offering is not linked to the Apple Card and does not require the use of one,
Bloomberg News reported.
Apple was not immediately available for a comment.
Australian BNPL operators Afterpay and Zip Co were both trading down about nine percent following the report.
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Rumors of Apple Pay Later service cause rivals shares to drop
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