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