Apple's pay later approvals could depend on previous Apple purchases

The company will reportedly evaluate your spending habits.

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Apple will rely on your previous purchases and spending habits to decide how much it will lend you for its upcoming "buy now, pay later" service, according to Bloomberg's Mark Gurman. Apparently, the tech giant intends to evaluate your eligibility based on your purchases at its retail stores, your App Store transactions and even the peer-to-peer transfers you've made using Apple Cash.

Whether or not you've applied for an Apple Card in the past will also reportedly factor into the amount the company will lend you, along with your spending habits using any other card linked to your Apple Pay. The company will take which Apple devices you own into account, as well, Bloomberg says. Apple Financing, the subsidiary the company established last year, is expected to be in charge of conducting customer background checks and loan approvals.

The tech giant first announced the "buy now, pay later" functionality for Apple Pay at its WWDC event in June 2022 with the intention of launching it later that year. While Apple didn't explain why it didn't arrive with iOS 16 like it originally intended, Gurman said at the time that the delays were caused by "fairly significant technical and engineering challenges in rolling out the service." To test the feature, Apple reportedly gave its retail employees access to it for their own purchases. In Gurman's latest report, he says testers have been seeing loan approvals for as much as $1,000.

When it first announced the pay later offering, Apple said it will give you a way to split the cost of purchases into four equal installments that you can pay over six weeks. That's a short amount of time, but you at least won't incur any additional interest or fees. The company reportedly plans to offer another option later on that would let you pay for larger purchases over several months, though that one will charge you interest on top of the base amount.