As Apple prepares for Pay Later's launch in the coming weeks, it was reported that the company would use a history of spending on hardware and services to evaluate the customer's creditworthiness.
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(Photo : Michael Short/Getty Images) CUPERTINO, CA - MARCH 25: Jennifer Bailey, vice president of Apple Pay, speaks during an Apple product launch event at the Steve Jobs Theater at Apple Park on March 25, 2019 in Cupertino, California. Apple announced the launch of it's new video streaming service, unveiled a premium subscription tier to its News app, and announced it would release its own credit card, called Apple Card.
Reviewing Customer History
The Apple Pay Later service will review customers based on their previous purchases and the devices they currently own. 9To5Mac reported that customers with a good spending history on Apple products are more likely to be accepted into this service.
Apple will decide whether your transaction is approved or denied through this process. Aside from previous purchases, the company will also review customers who have applied for an Apple Card credit card and other linked cards on their Apple Pay accounts.
In Apple's response, the company states that they do not store or have access to Apple Pay users' original credit, debit, or prepaid card numbers. Apple also does not retain any transaction information that can be tied back to you as these transactions only stay between consumers, the merchant, and the bank.
This is part of the company's efforts to enter the market of financial services, as they see this as an excellent opportunity for growth and potential pitfalls.
Since this will be supported by Apple's system and not a third party, the company's cash balances backstop the loans. Users have to expect the possibility that if they default an Apple Pay Later product, they will not be offered the chance to use it again until their account is back in good standing.
The Pay Later service will allow customers to buy something using Apple Pay on their phones in four installments for six weeks without interest attached. Apple Insider reported that some of the loan offerings were revealed as part of an internal company test, which developers confirmed seeing loan approvals for $1,000 and under.
Additionally, the loan expires after 30 days, and applications may require applicants to provide a copy of their government ID, full social security number, and two-step verification on their Apple account. Users' loan status with Apple Pay Later will not affect access to other company services.
Delayed Launch
Currently, this service is still undergoing tests before its launch. Bloomberg reported that it is running behind schedule as it was expected to launch as a part of iOS16 in September 2022. Unfortunately, the company faced setbacks during development that led to delays and indefinite postponement.
While there are rumors that the launch will be this month, Apple has not officially announced a new launch date for the Pay Later service. The feature is currently dormant in the Wallet app code in iOS 16.3, which means that Apple can roll out the feature instantly.
