In the WWDC 2022 Organized by Apple, the tech giant announced and talked about so many new software and hardware updates that they are going to offer. One of the very important and progressive steps for launching Apple’s Pay Later services. For that the company has created a subsidiary, called Apple Financing to handle Pay Later loans.
Apple’s Pay Later Services
Bloomberg, a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City, reported that Apple Financing will issue the Mastercard payment credentials to the customers so that they can use it to complete purchases. Unlike Apple Cards it will not handle lending and credit assessments. It will be built into Apple Wallet and will be eligible for use on any purchase made through Apple’s Pay Later services. Customers will be able to split the cost of purchase into four equal payments spread over a period of four months.
Apple’s Strategy
Apple’s old strategy of making components itself and being dependent on in-house versions despite being dependent on other companies’ products is being repeated. From components of computers to software, Apple always tries its best not to buy processes or other stuff from outside. This lessens the dependency on others. It means Apple in a real sense is a maker of gadgets and not an assembler. Apple previously came up with other services, like TV+ and Fitness+. And now after entertainment and fitness, Apple will enter financing too. The reason behind this is Apple’s continuous attempt to make its iPhone, iPad and Macbook users habituated to the Apple Environment.
Apple said that the actual mechanism of the Apple’s Pay Later services has not been decided yet. It will be decided by the treasury department of the company. The mechanism and the funding sources will shift over time. The best thing about this service is that Apple’s pay-later loans will not charge any interest and fees of any kind.
