Apple has confirmed that the company will link Apple Pay Later payments to Apple IDs to verify the authenticity of a user and minimize fraud.
Most companies that offer a buy now, pay later scheme use credit checks to determine whether someone should be offered credit, but Apple appears to be taking a different approach.
The company has established a subsidiary company to monitor the program, and alongside using traditional credit checks, the company will use its own platform, including using Apple ID data to verify the user’s identity and reduce the chances of fraud.
It’s likely that those with Apple IDs in good standing will be accepted for the service right away.
Using data that Apple already has gives it another edge when deciding who to lend to, and reduces its reliance on third-party companies.
Apple previously partnered with Goldman Sachs for its financial products like Apple Card, but the firm is now reportedly comfortable with the prospect of lending, and the Apple Pay Later scheme will only cover payments up to $1,000 to cover its back.
Apple will require users who want to access the Apple Pay Later scheme to link a debit card to their account and have payments automatically deducted from their bank account.