Apple - It Wants to Be Your Banker

 "[Apple] is launching a buy now, pay later offering in the U.S. later this year that will allow consumers that shop with Apple Pay to split purchases into four payments every two weeks. Apple will underwrite the loans and fund them, which also means absorbing losses when borrowers fail to repay. An Apple subsidiary has obtained lending licenses in most states to offer the new payment plans, called Apple Pay Later." - The Wall Street Journal, June 11, 2022.

This shows that Apple has become comfortable in the finance niche. It gained experience over the last three years with a credit card it had launched with Goldman Sachs. Now, though, it is flying solo. However, it is starting small. The transactions max out at a $1,000.

To screen applicants it is relying on credit reports and FICO scores. Also to do an identity check and prevent fraud it has its own Apple ID data.

A major objective in this venture is to deeper its relationship with customers. But, will it? Actually it can harm goodwill as well as put a ding in the Apple brand. Installment buying has been creating a debt problem.

A DebtHammer survey found that, yes, 45% of consumers use buy now, pay later. But 30% of those are now struggling with debt. Of course, this situation could worsen if the economy goes into recession. Social media could be full of outrage by those who blame Apple for allowing them to get into the pickle of buying something, it turns out, they can't afford. 

However, success in business, as I point out in this award-winning podcast, depends on trying things out. Apple Your Friendly Banker can be the platform for a sustainable non-tech profit center for Apple. That would continue to diversify it. 

On the litigation front, it had been law firm Paul Weiss which had defended Apple in the high-profile Epic v Apple. Global Competition Review recognized that as the Matter of the Year. Of course, though, antitrust issues will continue to haunt tech, both from competitiors and from the FTC. The latter has become more aggressive since it now has a majority of progressives on its board.

Connect with Editor-in-Chief Jane Genova at janegenova374@gmail.com. She helps businesses conjure up magic in their storytelling. One client said, "She makes shipping containers ‘sexy.’"

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