Apple handles all Apple Pay Later funding

Apple Pay Later bypasses Goldman Sachs and is run entirely by…Apple.

At WWDC 2022, Apple unveiled Apple Pay Later, a new Buy It Now, Pay It Later financing service. The new service will allow Apple Pay customers to finance a purchase with four payments over six weeks with no fees or interest. The service will likely launch with iOS 16 this fall.

According to a new report from Bloomberg, Apple has created a new subsidiary called Apple Financing LLC that will handle all financing for Apple Pay Later. The new company would handle credit checks, decision-making and loans for the service.

A wholly-owned subsidiary will oversee credit checks and make loan decisions for the service, which is called Apple Pay Later. The company – Apple Financing LLC – has the necessary state loan licenses to offer the feature, although it operates separately from the main Apple company, the company said in response to questions from Bloomberg.

This marks a major shift from financial partners like Goldman Sachs that Apple has historically used and continues to do for services like its Apple Card credit card. However, Apple was unable to completely break away from Goldman in its Apple Pay Later business. The company still provides the Mastercard payment credentials that Apple needs to offer the Buy It Now, Pay It Later service.

Apple has been working on a number of other financial services-related products that it’s looking to run internally, such as a hardware subscription program for not just the iPhone, but more of its hardware products.

At this rate, we will one day have an Apple Pay checking account and savings account.

Michael J. Birnbaum