The “Apple Pay Later” function, which enables users to make payments over time, has just been released by Apple. With loans ranging from $50 to $1,000, the business encourages Americans to take on more debt.
According to Ars Technica, Apple has taken a major step toward extending its financial services by introducing a limited edition of a brand-new service that is called Apple Pay Later. The program was initially unveiled in June 2022 at the company’s Global Developers Conference, but there were a number of setbacks before it went live.
Users of devices like iPhones can use the service to borrow money straight through the Wallet app. The tech behemoth has started by “inviting certain users to access a prerelease edition of Apple Pay Later,” with a complete rollout planned for the coming months.
The service allows users to request for loans between $50 and $1,000. However, the service can only be used with companies that take Apple Pay, whether they are online or offline. The loans must be repaid over a period of six weeks in four equal installments. Apple requires that these payments be made using debit cards.
Before beginning the loan, the tech behemoth performs a light credit check to ascertain eligibility. The payment schedule is shown on the user’s device, and there is a specific screen in the Wallet app where users can view their loan balance and forthcoming payments on a calendar.
Apple Pay Later is made possible by the company’s existing partnerships with MasterCard and Goldman Sachs. The service is “made possible through the MasterCard Installments program,” according to Tim Cook’s business, allowing it to immediately work with merchants that already take Apple Pay. “The MasterCard payment authorization required to complete Apple Pay Later transactions is issued by Goldman Sachs,” according to information provided about the program.
To fund Apple Pay Later loans, the company established a subsidiary, which it had not previously done with Apple Card or Apple Pay. In the fall, this subsidiary is going to begin reporting loans to the US credit bureaus.
As the rate of smartphone adoption has slowed in recent years, the tech behemoth has been expanding its services beyond hardware sales. The business now offers a broad variety of services, such as streaming entertainment, fitness, cloud backups, and financial products, in order to sustain profitability and continue to grow.
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