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Apple will manage loans for Apple Pay Later



Apple will manage loans for Apple Pay Later


A wholly-owned subsidiary of Apple will check users’ credit and issue short-term loans to users for the company’s upcoming short-term loan service, Apple Pay Later, Apple said.

The new service, which will compete with similar offerings from Affirm and PayPal, was announced at Apple’s developer conference on Monday. Later this year, when the company’s new iOS 16 iPhone software launches, users will be able to purchase products with Apple Pay and pay the balance in four equal installments over six weeks. It is a type of product often referred to as Buy Now Pay Later.

Apple has partnered with Mastercard, which interacts with vendors and offers a white-label BNPL product called Installments, which Apple uses. Goldman Sachs, which issues the Apple Card, is also involved as the technical issuer of the loans and official sponsor of the BIN, the company said. But Apple does not use Goldman’s credit decisions or its balance sheet to issue the loans.

The behind-the-scenes structure of Apple’s new lending product and the fact that it handles lending decisions, credit checks and lending reveals that the iPhone giant is looking to integrate the framework and infrastructure of its financial services as much in-house as possible.

Apple has increasingly entered the fintech industry, but its strategic approach to its Wallet app and financial services is to make its iPhone more valuable and useful to users so that they continue to buy. Apple hardware, which remains the company’s main source of sales.

Loans from the Apple Pay Later product are unlikely to be material to Apple in the near term, but suggest the company could use its prodigious balance sheet to offer more financial services in the future. Apple made $378.55 billion in revenue in 2021.

Courtesy: Apple Inc.

Apple will perform a soft credit check to ensure borrowers are likely to repay the loans, which will likely be capped at around $1,000, the company said. If Apple Pay Later Loans are not repaid, Apple will no longer extend these users’ credit. But it won’t report missed payments to the credit bureaus.

REFURBISHED IPHONE 11: TOP PRICE FOR REALLY LEVEL PERFORMANCE

Here is a good way to enjoy an iPhone 11 smartphone at a very low price thanks to a refurbished offer, an increasingly popular solution.

Here is a good way to take advantage of all the potential offered by the iPhone 11, without breaking the bank. In addition, the presence of a dual SIM slot allows you simultaneous professional and personal use. Solid, the iPhone 11 will follow you everywhere. With IP68 certification, it is completely insensitive to water and dust.

The refurbished Apple iPhone 11 is at a low price

The iPhone 11 is equipped with the famous A13 Bionic 6-core microprocessor, specially developed by Apple. You will particularly appreciate its large 6.1-inch screen which uses Liquid Retina HD display technology and which offers a resolution of 1792 X 8 28 pixels. The optical systems of the iPhone 11 have also contributed to the notoriety of the smartphone. Equipped with 2 rear cameras supplemented by a 3rd located at the front for your selfies, this mobile phone allows you to take quality photos as well as videos up to 4K resolution. A large number of features are also present, such as burst, self-timer or portrait modes. Added to this is a series of image quality optimization filters.

Apple iPhone 11: an unexpected price drop at Amazon

A modern iPhone for less than 500€? It’s a yes

This is a very interesting offer offered by Amazon, especially with the recent announcements and the release of the new iOS 16. If you want to take advantage of it without having to pay crazy sums of money, the merchant site offers the iPhone 11 for only 472, €59 instead of €589.

With this model, which dates back only 2 generations, you will be able to take advantage of all the new features of iOS 16 at a lower cost. And owning a smartphone with technical capabilities that are still very interesting.

The iPhone 11 still has a bright future ahead of it

The iPhone 11 is an Apple smartphone dating from 2019. However, it is not to be forgotten as it is still powerful and can afford a second youth with the release of iOS 16.

It has a beautiful 6.1″ Liquid Retina display with a resolution of 1792 x 828 pixels with a refresh rate of 60Hz. It is equipped with an Apple A13 Bionic chip as well as an Apple GPU quad core graphics chipset.

It works with 4 GB of RAM and 64 GB of internal memory to install applications and save photos, videos, etc. It is equipped with a 3110 mAh battery for a total autonomy of a day and a half with reasonable screen time. And it is compatible with 18W fast charging, even if the supplied charger is only 5W.

Finally, the photo is and has always been Apple’s strong point and this model lives up to the brand’s reputation with two 12 Mpx sensors on the back and one 12 Mpx also on the front. All for videos in 2160p at 24, 30 or 60 fps.

Apple iPhone 11: an unexpected price drop at Amazon

A modern iPhone for less than 500€? It’s a yes

This is a very interesting offer offered by Amazon, especially with the recent announcements and the release of the new iOS 16. If you want to take advantage of it without having to pay crazy sums of money, the merchant site offers the iPhone 11 for only 472, €59 instead of €589.

With this model, which dates back only 2 generations, you will be able to take advantage of all the new features of iOS 16 at a lower cost. And owning a smartphone with technical capabilities that are still very interesting.

The iPhone 11 still has a bright future ahead of it

The iPhone 11 is an Apple smartphone dating from 2019. However, it is not to be forgotten as it is still powerful and can afford a second youth with the release of iOS 16.

It has a beautiful 6.1″ Liquid Retina display with a resolution of 1792 x 828 pixels with a refresh rate of 60Hz. It is equipped with an Apple A13 Bionic chip as well as an Apple GPU quad core graphics chipset.

It works with 4 GB of RAM and 64 GB of internal memory to install applications and save photos, videos, etc. It is equipped with a 3110 mAh battery for a total autonomy of a day and a half with reasonable screen time. And it is compatible with 18W fast charging, even if the supplied charger is only 5W.

Finally, the photo is and has always been Apple’s strong point and this model lives up to the brand’s reputation with two 12 Mpx sensors on the back and one 12 Mpx also on the front. All for videos in 2160p at 24, 30 or 60 fps.

Apple Pay Later: payments in 4x without fees, here is all you need to know

Along with iOS 16 and watchOS 9, Apple announced the launch of a new Apple Pay Later feature, designed to allow customers to split their Apple Pay purchases into multiple payments. We had known for several months now that Apple was working on such a system. Apple Pay is therefore directly competing with other solutions such as Affirm, Afterpay, PayPal or even Klarna with this new “buy now – pay later” payment service.

APPLE PAY LATER, HOW DOES IT WORK?

With Apple Pay Later, Apple Pay users can choose to perform four payments spread over a six-week period instead of paying when purchasing a product. Function Apple Pay Later has no interest or fees, provided that customers make all four payments within the specified time. Apple Pay Later “makes it easy to view, track, and refund,” according to Apple’s statements.

WHICH STORES WILL ACCEPT APPLE PAY LATER?

The good news is thatApple Pay Later will be available wherever Apple Pay is accepted. You will therefore be able to make any purchase by paying it later in stores that support Apple Pay, but also on compatible websites and applications from your iPhone, iPad, Mac and Apple TV.

WHO WILL HANDLE PAY LATER CREDITS?

While we imagined that a bank would take care of loans, Apple will finally manage the loans for its new service itself. Indeed, this new feature, while simple for consumers, required some behind-the-scenes reorganization at Apple, including the creation of a brand new subsidiary to manage it.

This will now be the new subsidiary of the company, Apple Financing LLC, which will be in the business of providing loan services to consumers who want to buy a device and pay for it later. This company will carry out all credit reporting and issuance work in accordance with normal requirements and obtain the necessary licenses to operate in each regulatory jurisdiction.