‘Apple deferred payment service looks at customer order history’

Apple wants to make the Pay Later service available to customers in the coming weeks, Bloomberg writes. This concerns deferred payments when placing orders via Apple Pay. The company would look at the order history for creditworthiness.

Bloomberg editor Mark Gurman writes that with this system, Apple looks at the extent to which the user has been regarded as a good customer in the past. Specifically, this means that borrowers are evaluated based on their previous order history. This can concern all kinds of orders; this concerns orders via Apple Pay and is therefore not limited to just the previous purchase of Apple services or products.

In addition, the Cupertino company would also specifically look at which Apple hardware the customer has in his possession. Apple also looks at whether customers have previously signed up for an Apple Card credit card and the other cards they have linked to their Apple Pay accounts. So the service will use quite a bit of customer data, including their spending at stores, App Store transactions and certain services such as Apple Cash transactions.

Bloomberg relies on lending criteria that emerged as part of a test of the Pay Later service; that is currently being worked on for Apple employees. They can now use the service for their purchases and the evaluation will determine whether Apple will lend money to users who sign up and how high the amounts will be. Many test participants see permissions for loan applications of $ 1,000 and lower, the medium writes. Bloomberg has asked Apple for a response, but the company has declined to comment.

The Pay Later system, which will initially only be available in the US, is part of the Wallet app on an iPhone and gives users the option to purchase things via Apple Pay, whereby the purchase amount is divided into four equal parts that are divided into must be paid within the next six weeks. There are no interest rates or fees involved. Once customers sign up, they are asked how much they want to borrow, after which the system ultimately approves a specific amount. The service is available for in-app and online purchases, provided payment is made via Apple Pay. Apple uses the Mastercard network and the service does not require any integration for sellers. Bloomberg writes that the transaction history is stored at Goldman Sachs and Mastercard; for privacy reasons, that history would not be stored at Apple.