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


© Reuters. Apple Pay later Will Manage Lending Without Relying on 3rd Parties. Bloomberg

By Davit Kirakosyan

According to reports from Bloomberg News, Apple Inc. (NASDAQ:) 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.

Apple Pay Later was launched Monday at WWDC22. It is part of iOS 16 and allows customers to spread the cost of Apple Pay transactions in four equal installments over six weeks. Although the initial service will only be offered in the United States, Apple plans to soon expand its availability to other countries.

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

The longer-term plan, unlike the Apple Pay Later offer, is more likely to depend on third parties such as Goldman Sachs which may have different interest rates and plans.

The company also works on its own payment engine to replace CoreCard Corp.