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
8 months ago
Or live within your means.
Score: 26 Votes (Like | Disagree)
antiprotest Avatar
8 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
8 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
8 months ago
Our products too expensive? No problem! We’ve got a payment plan for you!
Score: 13 Votes (Like | Disagree)
dannyyankou Avatar
8 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
8 months ago
Payday loan schemes can't be too far behind.
Score: 9 Votes (Like | Disagree)

Popular Stories

iPhone trade in

Apple Adjusts Trade-In Values for iPhones, Macs, and More

Wednesday January 25, 2023 9:40 am PST by
After announcing new Mac and HomePod models last week, Apple adjusted its trade-in values for select devices in the United States. iPhone trade-in values decreased by up to $80, and most Android smartphones also went down. Mac trade-in values remained unchanged or increased by up to $40 depending on the model, while some Apple Watch models increased in value and others decreased. Trade-in...
iPhone 14 Pro Purple Side Perspective Feature Purple

iPhone 15 Pro Expected Later This Year With These 7 Exclusive Features

Tuesday January 24, 2023 4:53 pm PST by
Apple's next-generation iPhone 15 Pro and iPhone 15 Pro Max are expected to be announced in September as usual. Already, rumors suggest the devices will have at least seven exclusive features not available on the standard iPhone 15 and iPhone 15 Plus. An overview of the seven features rumored to be exclusive to iPhone 15 Pro models:A17 chip: iPhone 15 Pro models will be equipped with an A17...
Mac mini M2 2023

New 256GB Mac Mini and 512GB MacBook Pro Have Slower SSD Speeds Than Previous Models

Tuesday January 24, 2023 1:11 pm PST by
While the new Mac mini with the M2 chip has a lower $599 starting price, the base model with 256GB of storage has slower SSD read and write speeds compared to the previous-generation model with the M1 chip and 256GB of storage. A teardown of the new Mac mini shared by YouTube channel Brandon Geekabit reveals that the 256GB model is equipped with only a single 256GB storage chip, while the...
apple tv 4k red image

Apple Releases tvOS 16.3

Tuesday January 24, 2023 10:10 am PST by
Apple today released tvOS 16.3, the third major point update to the tvOS 16 operating system that originally came out in September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.3 comes six weeks after tvOS 16.2, an update that added Apple Music Sing. The tvOS 16.3 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software...
watchOS 9 Feature

Apple Releases watchOS 9.3 With New Watch Face, Bug Fixes

Monday January 23, 2023 10:06 am PST by
Apple today released watchOS 9.3, the third major update to the watchOS 9 operating system that first launched in September. watchOS 9.3 comes over a month after watchOS 9.2, an update that added new Workout functionality and Crash Detection optimizations. watchOS 9.3 can be downloaded for free through the Apple Watch app on the iPhone by opening it up and going to General > Software Update. ...
iOS 16

iOS 16.3 for iPhone Launching Next Week With These 4 New Features

Friday January 20, 2023 11:43 am PST by
In a recent press release, Apple confirmed that iOS 16.3 will be released to the public next week. The software update will be available for the iPhone 8 and newer and includes a handful of new features, changes, and bug fixes. Below, we've recapped bigger features in iOS 16.3, including support for physical security keys as a two-factor authentication option for Apple ID accounts, worldwide ...
maxresdefault

Hands-On With the New M2 Pro Mac Mini

Tuesday January 24, 2023 1:45 pm PST by
The new M2-series MacBook Pro and Mac mini models launched today, marking the debut of the first M2 Pro and M2 Max chips. We have the M2 Pro Mac mini on hand, and thought we'd take a look at the machine and do a series of benchmarks to see how it fits into Apple's lineup. Subscribe to the MacRumors YouTube channel for more videos. Base model Mac mini machines come with either an M2 or M2 Pro...
Ventura Macs Feature Blue

Apple Releases macOS Ventura 13.2

Monday January 23, 2023 10:09 am PST by
Apple today released macOS Ventura 13.2, the second major update to the macOS Ventura operating system initially released in October. macOS Ventura 13.2 comes more than a month after macOS Ventura 13.1, an update that added the Freeform app and other changes. The ‌macOS Ventura‌ 13.2 update can be downloaded for free on all eligible Macs using the Software Update section of System...