Apple Pay Later’s transformation turns the company into a comprehensive lending institution.

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Tech News Summary:

  • Apple has introduced a new service called Apple Pay that will enable it to lend money directly to consumers through the Wallet app on gadgets like the iPhone. The service was officially presented in June 2022 but encountered significant setbacks during the iOS 16 release in September.
  • Apple Pay will be available to everyone “in the coming months,” but selected users are currently being invited to access a pre-release version. The service will allow users to apply for loans with variable amounts ranging from $50 to $1,000, which can only be used at retailers that accept Apple Pay. Users have six weeks to repay the loans without interest, and payments will be divided into four installments.
  • Apple’s partnership with MasterCard and Goldman Sachs, which is being strengthened by Apple Pay Later,” will enable the service to work directly with resellers who already accept Apple Pay. Apple Pay Later transactions require the MasterCard payment identity issued by Goldman Sachs, and the company has established a branch office to finance loans. Apple previously diversified into a wide range of services and niche markets beyond hardware sales, including streaming entertainment, cloud backup, and fitness, among others.

Cupertino-based tech giant and world’s leading smartphone maker Apple has recently announced a new feature called “Apple Pay Later” that will allow users to buy products on credit and pay over time. With this announcement, the company is transforming into a full-fledged lender, making its foray into the financial services industry.

Apple Pay Later will be rolled out in two forms: Installments and Apple Pay Later, with the former allowing users to pay for purchases in four interest-free payments while the latter enables customers to defer payment for one or more months but with interest charges applied. The new payment options will be available for all Apple Pay purchases, whether online or at physical stores.

While this move may seem a little out of Apple’s domain, the company has been slowly expanding into the financial services industry in recent years. With the introduction of Apple Card in partnership with Goldman Sachs in 2019, the company has been gradually building its financial profile. Apple Card allows for contactless payments through Apple Pay, offers cashback rewards, and is integrated with the Wallet app on iPhones.

Apple Pay Later is a logical extension of the Apple Card, as the company is now offering a full range of credit services, including interest-free credit and installment payments. This move is a savvy way of increasing customer loyalty and driving more revenue for the company while also providing customers with more payment options.

The roll-out of Apple Pay Later comes at an opportune time when the ongoing COVID-19 pandemic has significantly impacted the global economy. The new feature will provide customers with more options to manage their finances and purchase products and services on credit. This will likely lead to more user adoption of Apple Pay and further solidify Apple’s position in the global payments industry.

In conclusion, Apple Pay Later is an exciting new feature that signals the company’s entry into the financial services industry. The move reaffirms Apple’s commitment to innovation and diversification and has the potential to become a substantial revenue stream for the company in the years ahead.

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