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Apple Using In-House Lending for New Apple Pay Later Feature
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If I buy something using my AppleCard on the 14th of the month, it doesn't post to my statement until the end of the month and isn't due until the end of the following month. So for all purchases made in the first half of any calendar month, this adds absolutely nothing (except an enforced payment plan) over buying with the Apple Card and paying when the amount comes due at the end of the following month. There is a trivial extended time benefit for purchases made in the second half of the month but really, why bother?
I buy everything I can using a credit card because I get 2-3% back in rewards that way and it makes my cash flow easier to track. But I never buy anything I can't pay off when my statement balance comes due. The credit card company makes money from charging the merchant but I'll be d*mned if I let them make money from me in addition. As someone said above, I'm just using OPM (other people's money) BUT only so long as it doesn't cost me a dime to do so.
It seems to me that the way this benefits AAPL is that it gets more people wanting to get their credit card. For people like me, that means they make money (used to be 4%) from merchants but for people who don't pay their statement balance in full, they then potentially make additional money from the cardholder if they carry a balance on purchases that don't qualify for Pay Later. Spend a $1000 thinking you can pay it off in installments over 6 weeks but fail to pay it off in that time and suddenly you are paying interest at the usurious rates typical of credit card interest (?18% annually?).
I buy everything I can using a credit card because I get 2-3% back in rewards that way and it makes my cash flow easier to track. But I never buy anything I can't pay off when my statement balance comes due. The credit card company makes money from charging the merchant but I'll be d*mned if I let them make money from me in addition. As someone said above, I'm just using OPM (other people's money) BUT only so long as it doesn't cost me a dime to do so.
It seems to me that the way this benefits AAPL is that it gets more people wanting to get their credit card. For people like me, that means they make money (used to be 4%) from merchants but for people who don't pay their statement balance in full, they then potentially make additional money from the cardholder if they carry a balance on purchases that don't qualify for Pay Later. Spend a $1000 thinking you can pay it off in installments over 6 weeks but fail to pay it off in that time and suddenly you are paying interest at the usurious rates typical of credit card interest (?18% annually?).
Like Samsung? They haven’t gotten to the “their own nation” bit, but they have a weapons division. (Maybe they should do the whole world a favor and conquer North Korea?)
This is so sleazy for Apple. They are clearly going to offer it to less then ideal credit scores otherwise they’d just opt towards a push towards Apple Card.
Well, I knew there had to be some bank involvement of some sort, the way financial regulations are written in the US. All those fintech startups that offer cards have to partner with someone (usually they partner with WebBank, it was odd that Goldman Sachs was willing to partner with Apple), and the fintech retail banking firms have to have deposit security (usually achieved by, once more, partnering with a regulated bank).
I also guarantee you that when this launches you are going to see a CRAP TON of people complaining about pulls on their credit report without ever even considering asking for one of these scam loans. SSN requirement for iCloud is right around the corner.
Oh and who wants to put money on there being a secured version of the Apple Card eventually. Like soon.
Oh and who wants to put money on there being a secured version of the Apple Card eventually. Like soon.
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I think there’s little reason to do it, though, because it’s a super saturated market right now. I swear, every other month, I see ads on the subway for new fintech firms. Sometimes it’s retail banking, sometimes it’s credit cards, sometimes it’s retail investing, sometimes it’s dodgy crypto schemes, but it’s on cue every other month.
Haha beat ya to the punch on this in the earlier thread
Alongside iOS 16 and macOS Ventura, Apple announced the upcoming launch of a new Apple Pay Later feature, which is designed to allow customers to split Apple Pay purchases into multiple payments.
With Apple Pay Later, Apple Pay users can choose to make four payments spread over a six week period instead of paying up front. The Apple Pay Later feature includes no interest or fees so long as customers make the four payments within the allowed period.
Apple has partnered with Goldman Sachs and other companies for past financial ventures, but according to Bloomberg, Apple plans to take on the lending for the Apple Pay Later feature. Apple has launched a subsidiary, Apple Financing LLC, to handle credit checks and make decisions on loans for the service.
Apple Financing LLC operates separately from Apple, and as Bloomberg notes, this is the first time that Apple has opted to deal with financing itself. Goldman Sachs still has a role in the program, however, as it issues the Mastercard payment credential used to complete Apple Pay Later purchases as Apple Financing doesn't have a bank charter.
Bloomberg back in March said that Apple was working on a multiyear plan to bring its financial services in house, cutting out the need for partners like Goldman Sachs. Apple is working on payment processing technology and infrastructure such as lending risk assessment, fraud analysis, credit checks, and dispute handling, plus it is working on tools for calculating interest, rewards, approving transactions, reporting data to credit bureaus, increasing credit limits, and more. The Apple Pay Later feature is its first effort, but Apple may also use Apple Financial to handle other future services like the hardware subscription service that is in the works.
Apple Pay Later has been in development for more than a year, and it is similar to PayPal's Buy Now, Pay Later feature that also allows for payments broken down into installments. At the current time, Apple Pay Later is limited to the United States.
Article Link: Apple Using In-House Lending for New Apple Pay Later Feature
Basically, it generally doesn’t require a credit check, or the credit requirements are far lower. The interest rate is also 0% if your payments are on time. It’s more for people without a credit card or who’d rather use credit in this way than charge it to their credit card for some reason.
Well yeah, which is why there’s usually a credit cap on these sorts of things. And it’s usually a lot lower than that of a credit card.
It’s funny, I have a pretty decent credit score, but my credit score all comes from proper loans, so I have no score for credit on demand (like credit cards) and would have to settle for something like a secured credit card or a pretty poor, super high rate credit card to build up enough credit score to get an Apple Card.
I think Apple knows that 85% of their clientele can’t qualify Apple Card with the bank they use, god knows I didn’t(my score is decent but divorce set me back big time with combined ex-Debt). But at the end If i can’t pay it outright I won’t do the pay later feature. Makes me wonder if more expensive devices will Follow this suit.
Despite the talk about soft credit check, if you’re behind on your monthly payments it will still be no bueno.
Despite the talk about soft credit check, if you’re behind on your monthly payments it will still be no bueno.
No they are not my son uses PayPal 4 pay all the time and it doesn't show up at all. He also uses Snap they don't charge interest for 100 days but if you don't pay in 100 days they charge very expensive interest from day one. And Snap doesn't show up on credit report unless you go over 100 days.
Whoever said this had a massive amount of privilege and no idea what it’s like to be poor.