Pay Later loans were handled by a subsidiary of Apple

Apple plans to handle lending decisions alone when its Pay Later service launches later this year with iOS 16. Bloomberg reports that the tech giant has established Apple Financing to conduct credit checks and approve customers.

In addition to being separate from Apple, the new firm has obtained all the necessary state licenses to make the feature available. Goldman Sachs was Apple's partner in previous ventures into financial services. It continues to be involved in Apple Pay Later.

Bloomberg reports that the company will provide customers with Mastercard credentials to use for payment, but it won't take care of lending and credit assessments like it currently does with Apple Card.

Apple is trying to emulate a strategy that has worked for the company in the past. Several of the components that power the company's computers and mobile devices have been developed in-house by the company.

This strategy has allowed Apple to lessen its dependence on external suppliers such as Intel and potentially increase revenue as well as make its products more appealing to consumers. Apple appears to be aiming for a similar result on the financial services front.

According to Bloomberg, the company is developing its own payment processing engine as part of an initiative called - not so subtly - 'Breakout.' It's also working on fraud analysis tools and interest calculation tools for customers.

The company likely sees those efforts as a way to keep iPhone, iPad, and Mac customers tied to its ecosystem, just like its TV+ and Fitness+ subscription services.

For more stories like this

Explore our website