Apple has launched its “Apple Pay Later” feature that will allow users to pay for purchases in multiple installments. The service encourages Americans to take on more debt with loans for items from $50 to $1,000.
Ars Technica reports that Apple has launched a limited edition of a new service called Apple Pay Later as a significant step in expanding its financial services. The service was first introduced at the company’s Worldwide Developers Conference in June 2022, but there was several delays leading up to its launch.
Users of devices like iPhones can borrow money directly through the Wallet app by using the service. With a full rollout scheduled for the upcoming months, the tech giant has begun by “inviting select users to access a prerelease version of Apple Pay Later.”
Customers using the service are eligible to apply for loans between $50 and $1,000. However, only Apple Pay-accepting businesses, whether online or offline, can be used with the service. The loans must be repaid in four equal payments over the course of six weeks. Apple mandates that debit cards be used to make these payments.
The tech giant runs a soft credit check to determine eligibility prior to starting the loan. The user’s device displays the payment schedule, and the Wallet app has a special screen where users can keep track of their loan balance and upcoming payments on a calendar.
The company’s current partnerships with MasterCard and Goldman Sachs enable Apple Pay Later. According to Tim Cook’s company, the service is “enabled through the MasterCard Installments program,” enabling it to function right away with retailers who already accept Apple Pay. “Goldman Sachs is the issuer of the MasterCard payment credential used to complete Apple Pay Later purchases,” according to information released about the service.
The business created a subsidiary to finance Apple Pay Later loans, something that was not done with Apple Card or Apple Pay in the past. This subsidiary will begin reporting loans to US credit bureaus in the fall.
The tech giant has been extending its services beyond hardware sales as smartphone adoption has slowed down in recent years. In order to maintain growth and profitability, the company now provides a wide range of services, including streaming entertainment, cloud backups, fitness, and financial products.
Read more at Ars Technica here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan