Apple intends to offer its products by entering into the financial services field. It has designed its Buy Now Pay Later (BNPL) programme. The programme will be handed by a wholly owned subsidiary. It will oversee credit checks and will take decisions on loans. Apple is thus taking a financial initiative for the first time. So far Apple products were financed by third party credit processors and banks. Even the Apple’s Credit Card was backed by Goldman Sachs.

Apple’s Pay Later transactions will be capped depending on a user’s credit history. The customer can split up the cost over for instalments across six weeks. The initiative will be introduced in the US first. Later it will be expanded to more regions.

BNPL for a longer period is in the offing. It is called Apple Pay Monthly Installments. This longer term initiative could be backed by other companies.

Apple has acquired Credit Kudas, UK to make lending decisions.