Apple ‘Pay Later’ to take advantage of new internal credit scoring, loan company

Apple is launching a new wholly-owned subsidiary as the tech giant expands its financial services and gets in on the action to buy now, pay later.

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AAPL APPLE INC. 137.13 -5.51 -3.86%

The company recently unveiled Apple Pay Later, a new feature that will allow users in the United States to split purchases made with Apple Pay into four equal payments over six weeks without interest or fees.

Apple Financing LLC, which holds state lending licenses and operates separately from Apple Inc., will handle Apple Pay Later’s credit reporting and lending.


Apple Pay Later will be available wherever Apple Pay is accepted online or in-app. Users have the option to request Apple Pay Later when making a payment with Apple Pay or through their Apple Wallet.

Apple Pay Later loans can be easily tracked, managed, and repaid through Apple Wallet. When a user requests a new loan, the payments they need to make on any other Apple Pay Later loan will show up in the next 30 days. Apple Financing will apply for soft credit to ensure customers are in good financial shape.

Apple Pay Later requires users to link a debIt card as the method of reimbursement. To help users stay on top of payments, autopay will be used as the feature’s default setting. Apple Pay Later will also notify users in advance when their automatic payment is being processed.

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MY MASTERCARD INC. 334.75 -14.25 -4.08%
GS THE GOLDMAN SACHS GROUP INC. 287.56 -22.80 -7.35%

Apple Pay Later operates the Mastercard installment program and Goldman Sachs is the issuer of the Mastercard payment credentials used to make Apple Pay Later purchases.


Apple Pay Later, which was showcased at the company’s Worldwide Developers Conference, will roll out as part of the upcoming iOS 16 update.

The update will also include the ability to edit and unsend text messages, a custom lock screen, and a shared photo library via iCloud.

iOS 16 is available now for Apple developer accounts and will be available to the public in beta next month. iOS 16 will officially roll out to the public this fall.

Troy M. Hoffman