Apple Pay Later will also rely on your Apple ID to prevent fraud

During the Apple WWDC 2022 opening event, the Cupertino company presented a new feature within its contactless payment system. From iOS 16, Apple customers will be able to benefit from Apple Pay Later, a payment facility that will offer payment in 4 installments free of charge. New details have just arrived on the approval before confirmation.

Your Apple ID will be used to know if you are serious or not.

A recent report from the Wall Street Journal sheds more light on how Apple Pay Later works. As a reminder, this service allows you to extend a payment in 4 installments free of charge on a daily purchase.up to $1,000. The process will be a little different from what we are used to in France, because instead of spreading the transaction over 4 months, it will be spread over 4 weeks, which corresponds more to the remuneration of American employees. who receive part of their salary every week.

As the report explains, Apple will use “lightweight” checks from credit bureaus, like banks do, the Cupertino company will look to see if you’re the type to to reimburse your debts or on the contrary to never settle what you owe. Let’s not forget that Apple is still trying to cover its back against bad payers, especially since the Californian giant uses its “war chest” to finance advances via Apple Pay Later.

Unlike “hard” checks, Apple’s checks will be light and will not necessarily observe all your requests for credits that you may have made in the past. Simply put, Apple should inspect your loans on a long duration rather than over a short period, because it is logical that if you are irreproachable in repaying a credit over several months/years, there is little chance that you will encounter difficulties on a simple payment in 4 instalments free of charge.

keynote wwdc22 apple pay later

The other data that will come into play to validate a payment via Apple Pay Later is history of your Apple ID.
The Cupertino company has not spoken about it, but it intends to use the data from your Apple account to find out if you are an honest person.
Here is what the Wall Street Journal explains:

Much like a bank, the tech giant will rely on credit reports and FICO scores to verify applicants’ financial status. But it also plans to use its giant Apple ID data store for identity verification and fraud prevention, people familiar with the matter said. […]

Candidates whose Apple ID has been in good standing for a long time and who have no signs of cheating are more likely to be approved.

Apple doesn’t want to frustrate you

Today, when we talk about Apple, we have the image of an ambitious technology company, which has revolutionized many markets and which is close to the professionals and families. Apple is desperate to maintain and protect this user-friendly brand image, however Tim Cook and the rest of the management team know that by stepping foot into the world of consumer finance, there is a high risk of degrade this image that a lot of customers have.

According to the report, Apple isn’t going to play the aggressive card if you’re behind on refunding money that was advanced through Apple Pay Later. It is explained that the company will not apply penalty and interest in the event that you are one or more weeks late on your due dates. Of course, things could change if you engage in abusive behavior and take advantage of that kindness.
This limit of $1,000 in the loan is also justified by the fact that Apple wants reduce the risks that consumers take too large advances and cannot repay.

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