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During the WWDC event a few days ago, Apple introduced their BNPL service called Apple Pay Later. It allows their customers to purchase Apple devices in four-month installments quickly and easily.
Typically, most companies that provide BNPL loan services will seek financing from financial institutions to ensure that they do not incur losses when a product is not repaid within the stipulated time.
Speaking to Reuters, Apple confirmed that their Pay Later service will be funded entirely by Apple’s own money, and the company will not take any loans from any bank.
The finance division of the company will operate the withdrawal mechanism to fund this service. They also said that if the feature is to be extended, the financial resources to fund the service may also change at a later date.
Apple also confirmed that their subsidiary, Apple Financing LLC will be responsible for verifying credit worthiness and loan disbursements to their customers.
Reuters