Apple Pay Later is finally live ๐๐ณ; Klarna + ChatGPT = ๐๐; Nasdaq to launch crypto custody ๐ธ
FinTech is Eating the World, 28 March
Hey Everyone,
Happy Tuesday! Todayโs issue is super hot as on the radar we have Apple which finally unveiled Apple Pay Later (why itโs massive + a look into Apple Bank), Klarna + ChatGPT = ๐๐ (why itโs a solid move), and Nasdaq thatโs to launch crypto custody (itโs an interesting timing!). Letโs jump straight into the burning stuff ๐ถ
Apple Pay Later is finally live ๐๐ณ
The launch ๐ Apple AAPL 0.00%โ has finally launched Apple Pay Later - its Buy Now, Pay Later (BNPL) service - in the US, enabling users to split purchases into 4 equal payments.
More on this ๐ First announced last June, Apple Pay Later is now open to select users in a pre-release version, with a full rollout set for the coming months. Hereโs it in a nutshell:
Users apply for loans of $50 to $1000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay. A soft credit pull is done during the application process with no impact on the user's credit.
Repayments are made in 4 equal installments, spread over 6 weeks with no interest and no fees. Users track, manage, and repay their Apple Pay Later loans in one location in Apple Wallet.
While Apple is working with Goldman Sachs GS 0.00%โ and Mastercard MA 0.00%โ on the service, it has set up a wholly-owned subsidiary, Apple Financing, to offer loans directly.
Apple is also handling credit checks for the service in-house. Last year, it acquired the UK credit bureau Credit Kudos, which uses open banking technology to deliver finely-tuned credit scores.
Why it matters? ๐ค This move could not only be the next big thing for Apple and a serious contender in the burgeoning BNPL market. More importantly, itโs a Step 0 to the Apple Bank. Hereโs the takeaway + a deep dive into Apple Bank's strategy: