Apple Pay Later Will Handle Lending Itself Without Relying on Third Parties – Bloomberg

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According to reports from Bloomberg News, Apple Inc. (NASDAQ:AAPL) will handle the lending itself for a new “buy now, pay later” offering, with a wholly-owned subsidiary, namely Apple Financing LLC, expected to oversee credit checks and make decisions on loans for the Apple Pay Later service.

With the help of the Apple Pay Later service, which was introduced Monday at the WWDC22 as part of the iOS 16 operating system, customers will be able to split up the cost of any Apple Pay transaction over four installments across six weeks. While the service will be available in the US at first, the company plans to eventually expand it to more regions.

Until now, the company’s financial services have been backed by third-party credit processors and banks, such as Goldman Sachs (NYSE:GS), which oversees the lending and credit assessment for The Apple Card credit card.

Unlike the shorter-term Apple Pay Later offering, the longer-term plan is likely to rely on third parties, including Goldman Sachs, which could offer different plans and interest rates.

Furthermore, the company is working on its own payment processing engine in order to eventually replace CoreCard Corp, as well as on new customer-service functions, fraud analysis, tools for calculating interest and rewards for other services.

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