Apple is putting out standards for how it will authorize transactions as it enters the loan market with a “buy now, pay later” service. Customers will be able to purchase using Apple Pay on their iPhone in 4 installments over six weeks with the buy-now-pay-later option. Customers can use the service for free and with no interest. Now, recently it has been released that Apple’s Buy Now, Pay Later’ tests creditworthiness by checking customer history as well as which of the company’s gadgets they own.
Apple Pay Later will allow users to make purchases and then pay in installments. It will also look at whether customers have enrolled for an Apple Card credit card and which cards they have paired to their Apple Pay accounts. The financing requirements were disclosed as part of a service test with Apple workers, who may now utilize the option for personal purchases. The evaluations decide whether the firm will lend money to candidates and how much money will be approved. Many testers are reporting loan approvals of $1,000 or less.
As, Apple ‘Buy Now, Pay Later’ to test creditworthiness by checking customer history, customers with a solid track record of spending on Apple products in retail locations are more likely to be approved for the purchase now pay later service, as Apple will view this as a strong sign of their ability to repay the loan. Mark Gurman, an Apple and tech reporter tweeted, “New story: With Apple pushing into the lending business with a “buy now, pay later” service, the company is laying out rules for how it will approve transactions. One key factor: whether you’ve been a good customer in the past.”
According to the instructions in the test version of the service, the Apple Pay Later loan offer expires after 30 days, and applications can demand a copy of a government identity card, full social security number, and two-step verification on an Apple account. Access to other Apple services will not be impacted by loan status with Apple Pay Later. According to the Apple Pay Later paperwork, transaction records are retained with Goldman Sachs and MasterCard – but not with Apple itself, for confidentiality.
Apple Pay Later is set to go live in the following weeks. Apple Pay Later is now in a massive field test, with Apple Store retail personnel participating. The feature was supposed to launch in September 2022 as part of iOS 16, however, it was delayed during development and then postponed indefinitely. Apple has not formally announced a new Apple Pay Later launch date, although it is likely to be online shortly. Apple Pay Later is the company’s first financial solution that is not supported by a third party. That implies Apple’s cash levels will eventually support the loans. Apple Pay Later will arrive first in the United States.
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Source: Mark Gurman Tweet