'Apple Pay Later' To Have Strict Lending Policy

Apple has established guidelines for its "buy now, pay later" service, "Apple Pay Later". The 0% interest free instalment service will evaluate borrowers based on their spending history, the Apple devices they own, their credit history with the company, if they have applied for an Apple Card credit card and the other cards they have linked to their Apple Pay accounts.

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Apple Pay Later is part of the company's broader push into financial services, which is seen as a significant growth opportunity. However, the service has experienced delays and is still in its testing phase. The company is also working on an infrastructure for financial products to reduce its dependence on banking partners.

Apple tested the service with employees and authorised numerous loans under $1,000, Bloomberg said. The 30-day offer requires official ID, a social security number, and two-step verification.

Apple is using data from its retail stores, App Store, and Apple Cash peer-to-peer payments to build the new service. Apple Pay purchases may be made in four payments over six weeks using the iPhone's Wallet app's Pay Later feature.

Apple Financing LLC handles applications, financing, and credit approvals, while Goldman Sachs Group Inc. issues the Apple Card and MasterCard Inc. provides the payment network. For consumer privacy, Goldman Sachs and MasterCard maintain transaction history, not Apple.

Apple plans to launch Apple Pay Later in the United States in the coming weeks,