Apple Pay Later turns Apple into a full-on money lender

Today, a new service called Apple Pay Later is launching on a limited basis, with Apple lending money directly to users through the Wallet app on devices such as iPhones.

We first heard about the service in 2021 and officially announced it at the company’s Worldwide Developers Conference in June 2022.

Apple is currently “inviting some users to access pre-release versions of Apple Pay Later.” The service will be rolled out to all users “in the coming months.”

Those who can afford it today can apply for loans ranging from $50 to $1,000.

The loan repayment will be split into 4 installments, giving the user 6 weeks to repay the loan interest-free. According to Apple, payments must be made with a debit card.

When a user initiates a loan, Apple performs a soft credit check before making an offer. A screen showing the payment plan summary appears on the user’s device. Additionally, there is a screen within the Wallet app that allows users to track loan balances and future payments in a calendar.

Apple Pay Later builds on Apple’s existing relationships with Mastercard and Goldman Sachs. The service is “enabled through the Mastercard installment program,” and Apple says the service will work immediately with merchants that already accept Apple Pay. “Goldman Sachs is the issuer of the Mastercard payment credentials used to complete Apple Pay Later purchases,” he said.

That said, Apple set up a subsidiary to fund Apple Pay Later loans. The subsidiary will begin reporting loans to US credit bureaus this fall.

With smartphone penetration slowing somewhat recently, Apple has spent several years diversifying beyond its profits based on hardware sales into a wide range of services such as streaming entertainment, cloud backup, fitness and financial production. I have tried.

Listing image by Apple