‘Apple service for deferred payment 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 Apple looks at the extent to which the user was known as a good customer in the past with this system. Specifically, this means that borrowers are evaluated based on their previous order history. This can concern all kinds of orders; it concerns orders via Apple Pay and is therefore not limited to the previous purchase of Apple services or products.

In addition, the Cupertino company would also look specifically at which Apple hardware the customer owns. Apple is also looking at whether customers have previously signed up for an Apple Card credit card and the other passes they have linked to their Apple Pay accounts. The service will therefore 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 came out as part of a test of the Pay Later service; it would currently be working 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 much 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 comment, but the company declined to comment.

The Pay Later system, initially only available in the US, is part of the Wallet app on an iPhone and allows users to purchase things via Apple Pay, dividing the purchase amount into four equal parts that are divided into must be paid within the next six weeks. There are no interest rates or fees involved. As soon as customers sign up, they are asked how much they want to borrow, after which the system finally 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 for this and the service does not require any integration for the sellers. Bloomberg writes that transaction history is stored at Goldman Sachs and Mastercard; for privacy reasons, that history would not be stored with Apple.