Allegedly, Apple is testing its new payment service “Apple Pay Later” at retail locations in the United States. As the service will allow users to apply for a loan to purchase Apple products and pay in four equal installments over six weeks, the company is now finalizing rules for how to approve transactions.
Bloomberg reports that the lending criteria for the upcoming Apple Pay Later service were revealed during testing with Apple employees which will be based on the evaluation of the customers’ spending history, the current devices they own, and whether they have applied for an Apple Card credit card and the other cards they have linked to their Apple Pay accounts.
Customers’ Apple Pay Later loan status would not impact their access to other services
According to the report, the company would determine how much money it was willing to lend and how much it will approve based on the evaluation of the applicants’ spending history. So far testers have seen approvals for $1,000 or lower.
The loans would expire after 30 days and the applicants might have to provide a copy of the IDs and other credentials.
Apple Pay Later loan offers expire after 30 days and applications will sometimes require a copy of a government identification card, full social security number and two-step verification on an Apple account, according to the notes in the test version of the service.
However, the loan status with Apple Pay Later would not affect customers’ access to other company services. Apple employees can also use the service to purchase personal devices.
It is speculated that the new payment service would let the tech company “leverage” its data on customers.
The new service will let Apple leverage its trove of data on customers, including their spending at company retail outlets, App Store transactions and services like Apple Cash peer-to-peer payments. Apple Pay, a mobile payment service launched in 2014, and the Apple Card, which debuted in 2019, have given the company an even closer connection to consumers’ financial lives.
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