Apple is jumping into the “buy now pay later” market, adding another challenge to fintech companies such as Klarna and Affirm that are already grappling with investor pressure, slower ecommerce growth and rising interest rates.

The iPhone maker announced the move as part of a range of product updates at its annual developer conference on Monday, alongside a new version of its custom processor for desktop computers, M2, and a more ambitious automotive integration that brings Apple’s software to the dashboard and speedometer.

With Apple Pay Later, iPhone and Mac users in the US can pay for purchases in four instalments over six weeks without being charged interest or other fees. The system will work using Mastercard’s network at any location that supports Apple Pay, online and in physical retail stores.