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• Apple Financing to conduct credit checks and provide loans for BNPL
• Tech giant has partnered with Goldman Sachs on other efforts
Apple Inc (NASDAQ: AAPL), which launched a “buy now, pay later” offering at its developers’ conference on Monday, will handle the lending itself, sidestepping financial institutions as the iPhone maker deeper into the financial services industry.
Apple Financing LLC, a wholly-owned subsidiary of the Cupertino giant, will oversee credit checks and make decisions on loans for the service, called Apple Pay Later, the company told Bloomberg.
Until now, Apple’s financial services, like its credit card launched in 2019, are backed by Goldman Sachs, a third-party credit processing bank.
Although, in the case of the BNPL service, Goldman Sachs is the Mastercard payment credential issuer used to complete Apple Pay Later purchases, the iPhone maker will finance the loans.
At the end of the last quarter, Apple had nearly $200 billion in cash and marketable securities and generated almost $95 billion in profit during the latest fiscal year, a financial resource that very few companies can match.
Apple Financing has necessary state lending licenses to offer short-term loans to customers, though it operates separately from the main Apple corporation.
Picture Credit: Apple
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