Apple will use past spending data to evaluate creditworthiness for its Apple Pay Later service
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Apple will use past spending data to evaluate creditworthiness for its Apple Pay Later service
Apple's CEO Tim Cook said earlier this month that its Apple Pay Later will launch "soon." According to the latest reports from Bloomberg, the feature is currently being tested by Apple's retail employees and could launch in the US in the coming weeks.
If you've been wondering how Apple decides whether or not to extend a loan to you, a report says that Apple will use past spending on its hardware and services to evaluate creditworthiness.
In other words, you are more likely to be offered Apple Pay Later if you've had a good history of spending on Apple devices. The idea obviously is that you have a better chance of repaying the loan if you have purchased multiple Apple devices.
As I've written before, the aim of Apple Pay Later is simple: help more customers buy more Apple products. This would in turn boost sales, revenue, and profit.
Apple Pay Later will launch in the US first and will let customers split their purchases into four instalments over six weeks. Customers buying Apple devices should automatically see the Apple Pay Later option surface should Apple deem them to be creditworthy.
If this service takes off, there's a good chance Apple might offer alternative payment options with longer repayment periods that may carry interest charges.
