Apple Using In-House Lending for New Apple Pay Later Feature

Alongside iOS 16 and macOS Ventura, Apple announced the upcoming launch of a new Apple Pay Later feature, which is designed to allow customers to split ‌Apple Pay‌ purchases into multiple payments.

Apple Pay Later Quick Green Feature
With ‌Apple Pay‌ Later, ‌Apple Pay‌ users can choose to make four payments spread over a six week period instead of paying up front. The ‌Apple Pay‌ Later feature includes no interest or fees so long as customers make the four payments within the allowed period.

Apple has partnered with Goldman Sachs and other companies for past financial ventures, but according to Bloomberg, Apple plans to take on the lending for the ‌Apple Pay‌ Later feature. Apple has launched a subsidiary, Apple Financing LLC, to handle credit checks and make decisions on loans for the service.

Apple Financing LLC operates separately from Apple, and as Bloomberg notes, this is the first time that Apple has opted to deal with financing itself. Goldman Sachs still has a role in the program, however, as it issues the Mastercard payment credential used to complete ‌Apple Pay‌ Later purchases as Apple Financing doesn't have a bank charter.

Bloomberg back in March said that Apple was working on a multiyear plan to bring its financial services in house, cutting out the need for partners like Goldman Sachs. Apple is working on payment processing technology and infrastructure such as lending risk assessment, fraud analysis, credit checks, and dispute handling, plus it is working on tools for calculating interest, rewards, approving transactions, reporting data to credit bureaus, increasing credit limits, and more. The ‌Apple Pay‌ Later feature is its first effort, but Apple may also use Apple Financial to handle other future services like the hardware subscription service that is in the works.

‌Apple Pay‌ Later has been in development for more than a year, and it is similar to PayPal's Buy Now, Pay Later feature that also allows for payments broken down into installments. At the current time, ‌Apple Pay‌ Later is limited to the United States.

Related Roundup: Apple Pay

Top Rated Comments

macfacts Avatar
24 months ago
Or live within your means.
Score: 26 Votes (Like | Disagree)
antiprotest Avatar
24 months ago
This is just the beginning. Eventually Apple will go into weapons and construction, and then establish its own nation.
Score: 24 Votes (Like | Disagree)
iGeneo Avatar
24 months ago
Score neutral

I’ve used them all the time. When i can use someone else’s money for free, I always will. They take payment automatically so I’m never late.
Score: 19 Votes (Like | Disagree)
now i see it Avatar
24 months ago
Our products too expensive? No problem! We’ve got a payment plan for you!
Score: 13 Votes (Like | Disagree)
dannyyankou Avatar
24 months ago
I’m sure most of the people criticizing this have a credit card they use themselves. And I’m sure a few of them have even purchased an Apple product with an installment plan in the past. Yes, that includes the iPhone upgrade program.

I wouldn’t use this myself. But let’s not be so judgmental of people that do.
Score: 12 Votes (Like | Disagree)
Neepman Avatar
24 months ago
Payday loan schemes can't be too far behind.
Score: 9 Votes (Like | Disagree)

Popular Stories

iOS 18 Siri Integrated Feature

iOS 18 Will Add These New Features to Your iPhone

Friday April 12, 2024 11:11 am PDT by
iOS 18 is expected to be the "biggest" update in the iPhone's history. Below, we recap rumored features and changes for the iPhone. iOS 18 is rumored to include new generative AI features for Siri and many apps, and Apple plans to add RCS support to the Messages app for an improved texting experience between iPhones and Android devices. The update is also expected to introduce a more...
iPhone 16 Camera Lozenge 2 Colors

iPhone 16 Plus Rumored to Come in These 7 Colors

Wednesday April 10, 2024 3:52 am PDT by
Apple's iPhone 16 Plus may come in seven colors that either build upon the existing five colors in the standard iPhone 15 lineup or recast them in a new finish, based on a new rumor out of China. According to the Weibo-based leaker Fixed focus digital, Apple's upcoming larger 6.7-inch iPhone 16 Plus model will come in the following colors, compared to the colors currently available for the...
apple silicon feature joeblue

Macs to Get AI-Focused M4 Chips Starting in Late 2024

Thursday April 11, 2024 10:10 am PDT by
Apple will begin updating its Mac lineup with M4 chips in late 2024, according to Bloomberg's Mark Gurman. The M4 chip will be focused on improving performance for artificial intelligence capabilities. Last year, Apple introduced the M3, M3 Pro, and M3 Max chips all at once in October, so it's possible we could see the M4 lineup come during the same time frame. Gurman says that the entire...
top stories 13apr2024

Top Stories: M4 Mac Roadmap Leaked, New iPads in Second Week of May, and More

Saturday April 13, 2024 6:00 am PDT by
Apple's hardware roadmap was in the news this week, with things hopefully firming up for a launch of updated iPad Pro and iPad Air models next month while we look ahead to the other iPad models and a full lineup of M4-based Macs arriving starting later this year. We also heard some fresh rumors about iOS 18, due to be unveiled at WWDC in a couple of months, while we took a look at how things ...
apple tv 4k yellow bg feature

When to Expect a New Apple TV to Launch

Tuesday April 9, 2024 8:30 am PDT by
It has been nearly a year and a half since the current Apple TV was released, so the device is becoming due for a hardware upgrade. Below, we recap rumors about the next Apple TV, including potential features and launch timing. The current model is the third-generation Apple TV 4K, announced in October 2022. Key new features compared to the previous model from 2021 include a faster A15...