Apple Pay Later will use Apple IDs to help detect fraud

Posted:
in General Discussion
Apple's handling of Apple Pay Later goes beyond just setting up a subsidiary, with the financial service said to use a customer's Apple ID and associated data to minimize the chance of fraud and losses.




Most financial firms that provide "buy now, pay later" services use third-party credit reports to judge whether it can afford to offer credit to new and existing customers. With Apple's entry into the field, the iPhone maker will be going beyond the usual checks.

For Apple Pay Later, a subsidiary has been created called Apple Financing LLC, giving Apple more direct control over the service. However, as a wholly-owned subsidiary, Apple is also able to provide information to the subsidiary that wouldn't necessarily be provided to a third-party outfit, such as its existing relationship with Goldman Sachs for Apple Card.

Along with traditional credit checking systems, Apple Pay Later will also take advantage of Apple's own platform in a number of ways, people familiar with the plan told the Wall Street Journal. This would include the use of Apple ID data to verify the user's identity, as well as for fraud prevention.

Applicants with Apple IDs that have been in good standing for a long time, and don't seem to have any indications they will commit fraud, will be more likely to be accepted for the service.

By performing checks itself using data that it directly manages, Apple has grown its confidence in becoming a lender itself, rather than deferring to a third-party firm. It is said by sources that Apple was concerned at the time of Apple Card's creation of the reputational risk of becoming a lender, and so partnered with Goldman Sachs.

A few years later, Apple is now supposedly more comfortable with the prospect, especially due to the relatively low value and short duration of the transactions it will handle. This will include a cap of $1,000 for the payment plans, though the final amount will still depend on usual credit checks.

Customers will also be required to link their debit card to the account, with payments automatically deducted from their bank account every two weeks, unless the customer opts out.

Read on AppleInsider

Comments

  • Reply 1 of 8
    Paul_BPaul_B Posts: 51member
    Logically speaking - If an individual knows the password, one million authentications will not provide anything.
  • Reply 2 of 8
    xbitxbit Posts: 357member
    I am deeply, deeply uncomfortable with Apple getting into BNPL lending. It's a murky market and it will only do Apple's brand harm.
  • Reply 3 of 8
    Which means that if their new subsidiary is a government regulated company then the regulators will have access to all that information without the need of a warrant.
  • Reply 4 of 8
    jcs2305jcs2305 Posts: 1,294member
    Paul_B said:
    Logically speaking - If an individual knows the password, one million authentications will not provide anything.
    Maye they will use two factor to authenticate the Apple Id as well, not just the username and password? If you don't have a device that is logged into the Apple Id being used in order to ok the 2 factor..no transaction can take place.

  • Reply 5 of 8
    mikethemartian said:
    Which means that if their new subsidiary is a government regulated company then the regulators will have access to all that information without the need of a warrant.

    Apple is just playing its part in the big picture. This is just the start. Thats why they want to move to a subscription based iPhone pricing model too.

    https://www.weforum.org/agenda/2016/11/8-predictions-for-the-world-in-2030/

    https://www.globalresearch.ca/own-nothing-happy-being-human-2030/5728960





  • Reply 6 of 8
    StrangeDaysStrangeDays Posts: 12,120member
    xbit said:
    I am deeply, deeply uncomfortable with Apple getting into BNPL lending. It's a murky market and it will only do Apple's brand harm.
    How is it any different than longstanding financing options for Macs? I mean, really.
    watto_cobra
  • Reply 7 of 8
    StrangeDaysStrangeDays Posts: 12,120member
    Which means that if their new subsidiary is a government regulated company then the regulators will have access to all that information without the need of a warrant.
    Can you provide more detail as to what on earth you're talking about? Search warrants are still needed for financial records.

    https://www.federalcriminallawyer.us/2010/10/15/seizure-of-bank-records-with-federal-search-warrant/

    A search warrant for bank statements, or any other financial records for that matter, is subject to additional requirements because bank and financial records are protected by federal law. The Right to Financial Privacy Act of 1978 (12 USC 3401 et seq.) provides privacy protection for bank and financial records.

    Because of this law, federal prosecutors must notify the person affected by the search warrant that their records were obtained. The US government must mail a notice to the customer within 90 days of execution of the search warrant indicating that the records were obtained, and also provide a copy of the search warrant. See 12 USC 3406. The notice is only required to be  mailed to the customer’s last known address, so the government is not required to otherwise search for the customer.

    edited June 13 watto_cobra
  • Reply 8 of 8
    StrangeDaysStrangeDays Posts: 12,120member
    mikethemartian said:
    Which means that if their new subsidiary is a government regulated company then the regulators will have access to all that information without the need of a warrant.
    Apple is just playing its part in the big picture. This is just the start. Thats why they want to move to a subscription based iPhone pricing model too.

    https://www.weforum.org/agenda/2016/11/8-predictions-for-the-world-in-2030/

    https://www.globalresearch.ca/own-nothing-happy-being-human-2030/5728960
    Sweet tinfoil hat nutso conspiracy theory links. COVID19 used as a cover by the new world order to restrict freedom, huh.... Yeah just get vaccinated and can it.

    And FYI, Apple has long had an iPhone subscription service, the iPhone Upgrade Program, where you can pay a monthly fee to have a new iPhone every year. Yawn.

    https://www.apple.com/shop/iphone/iphone-upgrade-program
    juji yinwatto_cobraFileMakerFeller
Sign In or Register to comment.