Apple Inc. is establishing guidelines for the approval of transactions for its new “buy now, pay later” lending service, which is intended to compete with other companies that offer similar installment plans. The company will consider a range of factors, including a customer’s spending history and the type of Apple devices they own, when evaluating borrowers for the Apple Pay Later service. The service, which is currently in the testing phase, will also assess whether a customer has previously applied for an Apple Card credit card and will review the other cards linked to their Apple Pay accounts.
Apple’s expansion into financial services is viewed as a significant growth opportunity, but it also presents potential risks. The company’s new “buy now, pay later” service, called Apple Pay Later, is part of this broader push and is expected to compete with other companies that offer similar installment plans. However, the Pay Later service has encountered some delays and is currently behind schedule, having been expected to launch last year.
In addition to the Pay Later service, Apple is also working on developing its own infrastructure for financial products, which would help reduce its dependence on banking partners. This strategy is aimed at allowing the company to have more control over its financial offerings and to generate new revenue streams. The company’s foray into this sector will be closely watched by investors, industry experts, and regulators alike, and the success of its new financial offerings will be determined by factors such as user adoption, product innovation, and effective risk management.