Apple Pay later reportedly has a $1,000 limit and requires your Apple ID to prevent fraud

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With the announcement of iOS 16 during WWDC 2022, Apple introduced a new service called Apple Pay Later, which will come to the US in the fall. The service allows you to get a loan to buy something, in effect it works like a Buy Now Pay Later service (but without interest or fees).

However, the time frame in which you can pay for everything is six weeks, and now, The Wall Street Journal reports that it will also have a maximum borrowing limit per transaction: $1,000. To prevent fraud, Apple will allegedly use your Apple ID information.

Looks like you can’t buy a 12.9-inch iPad Pro with Apple’s Pay Later service

The Wall Street Journal cites “people familiar with the matter” on the subject and lists the terms under which you can use Apple Pay Later to make a purchase. First, payment plans are said to be up to $1,000 per transaction. And the amount you can get also depends on your credit score. Yes, that means you can’t get the latest and greatest iPad Pro (the 2021 12.9-inch iPad Pro starting at $1099) or an iPhone 13 Pro Max (starting at $1099) with Apple Pay Later. Oddly enough, this is the time Apple didn’t use its Goldman Sachs affiliate to lend you money (the banking company is responsible for the Apple Card). For Apple Pay Later, Cupertino itself will act like a bank, relying on credit reports and FICO scores to check if you can get a loan. For those of you who don’t know, a FICO score is basically a number that helps lenders determine how likely you are to repay a loan. In addition, Cupertino uses Apple ID information to verify your identity for Pay Later and to prevent fraud. Pretty much, Apple will consider all the Apple ID information it needs to determine whether or not you will commit fraud with the Pay Later service.

And last but not least, you also have to link your debit card to the service. This means that the company will automatically charge you for the next installment every two weeks until everything is paid.

As you can see, Apple is jumping head-on into the financing market with all the necessary precautions. It will be interesting to see how the service develops over time and whether or not Apple will be successful in this new venture.

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