Apple Will Review User's Shopping History Before Using Pay Later Service

Apple Pay Later will soon be launched. (photo: dock. special)

JAKARTA - Apple Pay Later will soon be launched, and to use it, companies will look at their purchase history and even the Apple devices they own.

According to a report by Bloomberg journalist Mark Gurman, Apple intends to evaluate users' eligibility based on their purchases on the App Store, and peer-to-peer transfers that users make using Apple Cash.

In addition, users will also be evaluated on whether or not they have applied for an Apple Card, some sort of credit card in the past will reportedly also be a factor, along with the user's spending habits using other cards related to Apple Pay.

Finally, the company will also look at which Apple devices it owns before deciding how much Apple will loan its users for the Pay Later service.

It's unclear what data Apple will look at to determine a user's creditworthiness other than knowing what purchases were paid for by what method. Most likely, the Privacy Policy and Terms of Service will outline exactly how Apple determines creditworthiness.

Later Apple Financing, a subsidiary founded last year, will be responsible for conducting customer background checks and loan approvals.

The Cupertino, US-based tech giant first announced its Pay Later service for Apple Pay at its WWDC event in June 2022 with the intention of launching it later that year.

However, it had to be delayed due to significant technical and engineering challenges in launching the service. Currently, the feature is reportedly being trialled on its retail employees for their own purchases. A tester has seen loan approvals as high as USD 1.000 (IDR 15 million).

When users can enjoy the Pay Later service, Apple will divide the purchase cost into four equal installments and can be paid for six weeks. This was quoted from Engadget, Thursday, February 16.