Apple Pay Latera sort of short-term, zero-rate loan, which will be entirely financed by Apple ! Indeed, the new subsidiary Apple Financing LLC has already obtained the necessary permissions and will operate independently to power the service.
But it is a banking first for Cupertino which went through real financial organizations until now. As a reminder, Apple Pay Later allows users -who make a transaction via Apple Pay- split the cost into four payments over six weeks, with no fees or commissions.
Attractive on paper, this initiative nevertheless presents a certain number of restrictions, starting with its field of application (the United States for the moment). The announcement also caught the attention of Consumer Financial Protection Bureau (the US consumer finance regulator), which raises a
a host of problems and antitrust concerns!
For this organization, Apple could thus have access to a lot of customer data via Apple Pay, and could use this data to give yourself an unfair advantage over competing services (not to mention in some cases questions of privacy). Also, the CFPB asked for some explanations on the access, collection and use of its information, similar questions having been asked of Amazon, Facebook, Google and PayPal.
Finally, the CFPB is concerned about the risk of worsening household debt, Apple not being a bank and not engaging – for the moment – in a preliminary study of the file. At this rate, it is unlikely that the service will soon arrive in Europe (where we are still waiting for Apple News, or the Apple Card).