Apple 'Pay Later' to leverage new in-house credit assessment, lending company
Apple Pay Later will officially roll out to the public this fall as part of the iOS 16 update
Apple: What the company's exciting new changes mean
Kelly Intelligence founder and CEO Kevin Kelly and Starship Capital managing partner John Meyer react to Apple's new changes and explain what they mean for the stock.
Apple is launching a new, wholly owned subsidiary as the tech giant expands its financial services and gets into the action on the buy now, pay later space.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 228.52 | -0.48 | -0.21% |
The company recently unveiled Apple Pay Later, a new feature that will enable users in the U.S. to split purchases made with Apple Pay into four equal payments spread over six weeks with zero interest and no fees.
Apple Financing LLC, which maintains state lending licenses and operates separately from Apple Inc., will manage Apple Pay Later's credit assessment and lending.
APPLE UNVEILS BUY NOW, PAY LATER OPTION
Apple Pay Later will be available everywhere Apple Pay is accepted online or in-app. Users have the option of applying for Apple Pay Later when they are checking out with Apple Pay or through their Apple Wallet.
Apple Pay Later loans can be easily tracked, managed and repaid through the Apple Wallet. When a user applies for a new loan, they will be shown payments that they have due on any other Apple Pay Later loans within the next 30 days. Apple Financing will conduct a soft credit pull to ensure customers are in a good financial position.
Apple Pay Later will officially roll out to the public this fall as part of the iOS 16 update
Apple Pay Later requires users to link a debit card as a repayment method. To help users stay on top of payments, autopay will be used as the feature's default setting. Apple Pay Later will also notify users in advance when their auto payment is being processed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MA | MASTERCARD INC. | 515.10 | +2.56 | +0.50% |
| GS | THE GOLDMAN SACHS GROUP INC. | 596.11 | +14.18 | +2.44% |
Apple Pay Later leverages Mastercard's installment program and Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.
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Apple Pay Later, which was introduced at the company's Worldwide Developers Conference, will roll out as part of the upcoming iOS 16 update.
The update will also include the ability to edit and unsend text messages, a personalized lock screen and a shared photo library through iCloud.
IOS 16 is available for Apple developer accounts now and will be available to the public as a beta version next month. IOS 16 will officially roll out to the public this fall.