One of the most intriguing announcements at WWDC 2022 was the launch of Apple Pay Later.
A new service that allows users to split a payment made using Apple Pay into four equal payments over six weeks without incurring interest or late fees, Apple Pay Later has been well received by users looking for more flexibility when making large payments. purchases.
Apple has now revealed more details about exactly how the service will run, including the rather important detail that it will actually manage the finances and borrowing involved in Apple Pay Later itself.
Show Apple the money
According to a report by Bloomberg (opens in new tab)the company will use its subsidiary Apple Financing LLC for credit checks and loan decisions for the new service.
This is despite Apple itself not having an actual bank letter that would allow it to act like a normal bank, with its current services – including Apple Card and Apple Cash – supported by third-party banking partners.
The company’s existing financial services partners, which include Goldman Sachs and Mastercard, are likely to play a significant but minor role in helping Apple Pay Later run smoothly.
Apple has been looking to bring more financial services in-house in recent years as it seeks to gain more control and oversight of its customers’ data.
Bloomberg adds that Apple is also working on its own payment processing engine, dubbed Breakout, which should give more freedom and flexibility, and is also developing tools for fraud analysis and interest calculations.
There has been no official confirmation of these claims from Apple, so we’ll have to wait and see if any of this comes to fruition, but given the company’s past success in bringing other parts of the tech ecosystem in-house, as seen with its M1 and now M2 hardware, such a move would not be surprising.