Apple is set to launch a new wholly owned subsidiary as the tech giant expands its financial services and gets into action on the pay later space.
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 Pay Later will be available everywhere where Apple Pay is accepted online or in-app. Users can choose to apply for Apple Pay Later when checking out with Apple Pay or through their Apple Wallet.
Apple Pay Later loans can be 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 make sure customers are in a good financial position.
Apple Pay Later requires users to link a debit card as a repayment method. Autopay will be used as the default setting to help users stay on top of payments. Apple Pay Later will notify users in advance when their auto payment is being processed.
Apple Pay Later has a Mastercard installment program and Goldman Sachs is the issuer of the Mastercard payment credential that is used to complete Apple Pay Later purchases.
Apple Pay Later, a feature introduced at the company's Worldwide Developers Conference, will be included in the upcoming iOS 16 update.
The update will also include the ability to edit and un send 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 be available to the public this fall.