Well, this is a bit more reassuring.
Following its announcement of its Apple Pay Later financing option and its Apple Financing LLC division, Apple has stated that it plans to use a customer’s Apple ID and associated data to minimize the chance of fraud and losses.
While most financial firms offering a “buy now, pay later” service generally use third-party credit reports to judge whether it can afford to offer credit to new and existing customers, Apple will apparently be doing this on its own via the Apple Financing LLC division. This move, in turn, could offer Apple more direct control over the service. Apple could also provide information to Apple Financing that wouldn’t necessarily be provided to a third-party outfit, such as its existing relationship with Goldman Sachs for Apple Card.
Alongside traditional credit checking systems, Apple Pay Later will also take advantage of Apple’s own platform in various ways. Among these techniques would be the use of Apple ID data to verify the user’s identity, as well as for fraud prevention.
Applicants with Apple IDs that have been in good standing for a long time, and don’t seem to have any indications they will commit fraud, will be more likely to be accepted for the service.
Following its release of the Apple Card and its partnership with Goldman Sachs, Apple seems comfortable handling its own finances. This will include a cap of $1,000 for the payment plans, though the final amount will still depend on usual credit checks.
Customers will also be required to link their debit card to the account, with payments automatically deducted from their bank account every two weeks, unless the customer opts out.
Stay tuned for additional details as they become available.
Via AppleInsider and the Wall Street Journal