Apple enters the BNPL space part 2

Image credit: Phil Siarri

Following the initial June 6 announcement of Apple entering the U.S. “Buy Now Pay Later” (BNPL) industry, new details have emerged.

Here are some key points (sources: TechCrunch, WSJ, iMore):

  • Apple formed a fully owned yet separate subsidiary called Apple Financing LLC which will assess and issue credit in compliance with “the usual requirements and obtain the necessary licenses to work in each regulatory jurisdiction”.
  • Apple will rely on credit reports and FICO scores in order to check the financial health of applicants. The Big Tech firm also plans to use its enormous Apple ID data for ID verification and fraud prevention.
  • Apple is partnering with Goldman Sachs as the Mastercard credential provider.
  • To sign up for Apple Pay Later, you will require a debit card and won’t be able to “pay down credit with more credit”.
  • The maximum loan amount will be $1,000.

It’s clear that Apple wants to be in the driver’s seat with this new venture but also take a cautious approach.

This story was first published on The PhilaVerse (my Substack newsletter).



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Phil Siarri

Phil Siarri

Founder of Nuadox | Tech & Innovation Commentator | Digital Strategist | MTL | More about me>