Apple Using In-House Lending for New Apple Pay Later Feature

[Localcelebrity]

Our products too expensive? No problem! We’ve got a payment plan for you!

Honestly, yes. That is a big factor in this I’m sure. Or at least sparked the demand. Apple had the Barclaycard for purchases for a long time, they know the demand exists. Also, there is a massive demand for payday loans and such, it makes sense that Apple can make something less predatory viable.

I don’t think Apple is going to get into interest bearing loans. It’s a way to use the cash stockpile to increase sales. As soon as companies start to add interest to these buy-now-pay-later micro-loan services I think the public will stop using them.

I think so long as the interest rate stays below the rate of a credit card itself, or remains more accessible, they will remain popular.

But, I agree, I don’t think Apple has interest in interest bearing loans… yet.

 

[MuppetGate]

People here on the forums laughed at me a few months ago when I said Apple is gonna build a community with Apple branded homes. It’s gonna be an exclusive and they will do significant background check to determine if you can live in a Apple community.

Ah, the old Melanin Test …

 

[windowsblowsass]

tons of people in here making lots of over the top statements about any form of credit who I'm sure have never carried a balance on a credit card, have any student loans, a mortgage, a car payment, or have ever bought any product ever on installments.

 

[windowsblowsass]

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).

Apple isn't a startup they are the biggest corporation in the world. Their previous lending partner was Barclays. Not odd at all that Goldman would want to be in business with the largest company in the world

 

[gsurf123]

Soon enough they will have rewards schemes like the airlines.

They don’t need to since they pay cash back. Take the money and buy a ticket.

 

[kc9hzn]

Apple isn't a startup they are the biggest corporation in the world. Their previous lending partner was Barclays. Not odd at all that Goldman would want to be in business with the largest company in the world

Yes, but considering that Goldman Sachs doesn’t tend to go in for this sort of thing and almost everyone and his brother has partnered with WebBank, that’s where I was coming from. In fact, I don’t tend to think retail banking or credit when I hear Goldman Sachs, I tend to think equities trading.

 

[MuppetGate]

Yeah. I'm really curious how they're going to handle missed payments.

WWDC 2025

Apple today announced the iBailiff.

Operating out of Apple Stores across the nation, iBailiff teams will handle debt collection and kneecapping for the customers late with their loan repayments.
Each iBailiff will arrive at your home at a time not of your choosing to recover the debt, or administer what Apple is branding as an “iBeating”. Further failures to pay off the debt will result in an actual branding.
“It’s all about customer service,” said Vinny the Knife, a new recruit to the New Jersey iBailiff team. “Not so much giving people what they want, but kinda what they deserve.”
”That‘s right,” agreed his partner, Knuckles McGinnty. ”Debt is in Apple’s DNA. We want Apple customers to have the full experience.”

 

[Cognizant.]

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.

If you don’t pay it shows up on the credit report. That’s what I’m referring to is what you just said. It’s credit.

 

[BF1M]

Whoever said this had a massive amount of privilege and no idea what it’s like to be poor.

It’s correct though.

 

[BF1M]

WWDC 2025

Apple today announced the iBailiff.

Operating out of Apple Stores across the nation, iBailiff teams will handle debt collection and kneecapping for the customers late with their loan repayments.
Each iBailiff will arrive at your home at a time not of your choosing to recover the debt, or administer what Apple is branding as an “iBeating”. Further failures to pay off the debt will result in an actual branding.
“It’s all about customer service,” said Vinny the Knife, a new recruit to the New Jersey iBailiff team. “Not so much giving people what they want, but kinda what they deserve.”
”That‘s right,” agreed his partner, Knuckles McGinnty. ”Debt is in Apple’s DNA. We want Apple customers to have the full experience.”

*crickets*

 

[Abazigal]

It makes perfect sense.

Remember when people were complaining that the iPhone was getting too expensive and sales would drop unless Apple released a cheaper phone? Apple went on to do the exact opposite, by offering instalment plans and trade-ins in older devices. This, coupled with them supporting their devices for longer, have increased the value proposition of iPhones while making them more accessible to the general public.

The Increasing Importance of Apple’s iPhone Trade-in Program

techpinions.com

This is simply an extension of what Apple has been doing all along. Apple likely has enough insight into their customer base with regards to purchase affordability, and should be fairly confident that only a small proportion of their customers will end up defaulting on their loans.

It also signals that Apple is getting more aggressive about entering the fintech sector, and it will be intriguing to see where they go next from here.

 

[David Templar]

I’m sure most of the people criticizing this have a credit card they use themselves. And I’m sure a few of them have even purchased an Apple product with an installment plan in the past. Yes, that includes the iPhone upgrade program.

I wouldn’t use this myself. But let’s not be so judgmental of people that do.

"I’m sure most of the people criticizing this have a credit card they use themselves." followed by
"But let’s not be so judgmental of people...", sure, because you are making sense, "this is my judgment" "let's not be judgmental" lolz

 

[Cognizant.]

"I’m sure most of the people criticizing this have a credit card they use themselves." followed by
"But let’s not be so judgmental of people...", sure, because you are making sense, "this is my judgment" "let's not be judgmental" lolz

I don't think stating someone has a credit card they use is an insult or a judgement. Sounds like a general statement. If he said he's sure most people criticizing this are idiots that mistreat their mothers ... that would have been insulting and judgmental.

 

[sudo-sandwich]

I'll gladly take free loans, but I'm not exactly sure why Apple is doing this. Is the idea to eventually replace credit cards with Apple Pay?

 

[sudo-sandwich]

It’s correct though.

No it's not, even for wealthier people. Any individual or business keeping a 50% reserve is being way too conservative and incurring high opportunity costs.

Like say you can afford the rent at your current place, and you want to buy a median-priced home in your area for $1M. Paying monthly rent is OK by your rules, but paying monthly mortgage isn't, so you're going to save up $2M. Someone else gets a mortgage and snaps it up. Meanwhile you're saving money, still paying rent. Due to the nature of our tax system, you're even indirectly subsidizing the guy who bought the house. Eventually you have $2M in liquid assets. Years of your life are gone, your kids are grown up... and you still can't afford a median-priced house because they've all appreciated.

 

[H2SO4]

Or live within your means.

There is nuance to lending/borrowing. On its own, the phrase live within your means is a little disingenuous.
Did you buy your house cash?
I doubt it. You bought it because you THOUGHT you’d be able to service the debt. That might easily change and then someone could tell you, “Well you bit off more than you could chew”.
However. I think I see the general point you’re making.

 

[BF1M]

No it's not, even for wealthier people. Any individual or business keeping a 50% reserve is being way too conservative and incurring high opportunity costs.

Like say you can afford the rent at your current place, and you want to buy a median-priced home in your area for $1M. Paying monthly rent is OK by your rules, but paying monthly mortgage isn't, so you're going to save up $2M. Someone else gets a mortgage and snaps it up. Meanwhile you're saving money, still paying rent. Due to the nature of our tax system, you're even indirectly subsidizing the guy who bought the house. Eventually you have $2M in liquid assets. Years of your life are gone, your kids are grown up... and you still can't afford a median-priced house because they've all appreciated.

Your argument is flawed for two reasons. One appreciation as you mention is far from an exact science. Two; BNPL isn’t talking about purchases that build equity. It’s so Johnny, who can’t afford the child support he owes to 4 women, can have his Xbox now and pawn it later for cents on the dollar, default on the loan and drive up costs for the rest of us.

No amount of stretching of your elementary understanding of finance can make BNPL into anything more then what it actually is; predatory.

The original idea is still sound: having 500 bucks in cash only doesn’t mean you can afford a 500 Xbox.

 

[BF1M]

There is nuance to lending/borrowing. On its own, the phrase live within your means is a little disingenuous.
Did you buy your house cash?
I doubt it. You bought it because you THOUGHT you’d be able to service the debt. That might easily change and then someone could tell you, “Well you bit off more than you could chew”.
However. I think I see the general point you’re making.

Equity is the key take away here.

 

[BF1M]

I'll gladly take free loans, but I'm not exactly sure why Apple is doing this. Is the idea to eventually replace credit cards with Apple Pay?

If you need a “free” loan to afford something you can’t afford it.

 

[norwaypianoman]

c") ... if you do not pay they will just nib your iPod...

 

[laz232]

People here on the forums laughed at me a few months ago when I said Apple is gonna build a community with Apple branded homes. It’s gonna be an exclusive and they will do significant background check to determine if you can live in a Apple community.

New Disney business will develop residential communities with 55+ housing

The Walt Disney Company on Wednesday announced plans to introduce Storyliving by Disney master-planned communities that include 55+ housing.

www.mcknightsseniorliving.com

All this sounds strait outa dystopian novels from yesteryear. And how we laughed at how preposterous those story ideas were. And yet here we are.

I welcome our Cyberpunk overlords. /s

 

[SPUY767]

If you use a credit card for any reason other than convenience, or rewards, be it cash back or points or whatever, and you don't pay it off in full monthly, you are financially illiterate.

 

[kc9hzn]

I'll gladly take free loans, but I'm not exactly sure why Apple is doing this. Is the idea to eventually replace credit cards with Apple Pay?

Mostly, I think it’s to do for real world payments what iTunes billing did for online music and apps. Convince merchants of the value of supporting Apple Pay (especially in apps and on the web, not necessarily in store). They specifically highlighted that people accepting it could get it just by accepting Apple Pay. There’s no need to set up Affirm or something like that in your checkout process. By using Apple Pay, you get to offer pay later without the mess of dealing with another firm.

 

[JM]

Apple has a monopoly on credit lending. I’ll never be able to create my own credit lending service. Unfair advantage. I’m suing. Sherman Anti-Trust Act. Greedy Apple.

💵

 

[kc9hzn]

New Disney business will develop residential communities with 55+ housing

The Walt Disney Company on Wednesday announced plans to introduce Storyliving by Disney master-planned communities that include 55+ housing.

www.mcknightsseniorliving.com

All this sounds strait outa dystopian novels from yesteryear. And how we laughed at how preposterous those story ideas were. And yet here we are.

I welcome our Cyberpunk overlords. /s

Huh go figure, kinda like Walt’s original plans for Epcot.