Apple is officially entering the financial space with its own buy now, pay later service that was announced at the WWDC 2022 this week. The company talked about offering people the chance to make the payment in four equal instalments.
It got people talking about the nature of this service, how the company plans to offer the payment, and who is providing the loans, is Apple going to partner with a financial service for this option.
Turns out, that Apple, which is a trillion-dollar valued company, is going to provide the loans itself. The company is going to set up a subsidiary to handle this business, which will be involved in checking for user credit and offering short-term loans as a part of the Apple Pay ecosystem.
And that’s the main operating word, using Apple Pay to buy the products, which allows consumers to convert their purchase into four-equal instalments that are to be paid within six weeks or 2 months.
Apple also has its own Apple Card for consumers, which has been provided in partnership with Goldman Sachs, but according to reports, the Cupertino-based giant is not going to use Goldman to make the loan approval decisions, and will do that bit on its own, and even use the funds from its own pool to disburse the loans to its customers.
Apple Pay Later service will be launching later this year when iOS 16 becomes publicly available, and it will start offering the service in the US for now, and probably move to other countries in the near future.
With the Apple Card and now Apple Pay Later, it is fair to say that the iPhone maker is no longer just a hardware and software enterprise. It has serious ambitions in the financial space, and with the company’s valuation in the market, one is hardly surprised to see it moving into this segment.