It has been confirmed that an Apple subsidiary company will manage its new Apple Pay Later service.
First announced at this week’s WWDC event, Apple will offer consumers the chance to pay for goods and services in instalments, through a new feature in the Apple Wallet app.
It has now been reported that the service will be managed by an Apple subsidiary company, rather than Apple partnering with a bank or lender, to help the company increase its profit margins.
Apple Financing LLC will be responsible for credit checks and loan decisions, and the firm already has all of the necessary licenses to operate in the United States. Prior to the company’s launch, Apple has partnered with third-party banks such as Goldman Sachs to offer services like Apple Card.
The news marks a significant step forward for Apple, as it looks to reduce its reliance on other companies and manages its own services in house. Following the success of several buy now, pay later services, Apple Pay Later could be a significant revenue generator for the company, and managing everything in-house means that Apple has total control over the way the service is run.
However, as Apple doesn’t have a bank charter, Goldman Sachs and Mastercard will play a “small role” in the Apple Pay Later program.
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