Last year,
Apple Pay Later became available for all qualifying US residents. With this service, eligible customers can split a purchase made with Apple Pay into four equal payments over six weeks without any interest or fees. Until now, using short-term buy now, pay later (BNPL) or pay-in-4 (Pi4) loans, like those offered through Apple Pay, didn’t impact your credit report. However, this is about to change.
Experian, in partnership with Apple, will now include users’ BNPL information in their credit reports (via
Apple Insider). This makes Apple Pay Later the first BNPL service to have its data reflected in Experian credit reports.
Starting February 28, loans through Apple Pay Later will be noted on Experian credit reports with a BNPL designation. While existing traditional credit scores won’t reflect this change, upcoming credit scoring models may incorporate it.
Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet, stated:
We designed Apple Pay Later with our users’ financial health in mind, and an important part of this is ensuring that their loans are reflected in their overall financial profiles. By reporting Apple Pay Later loans to Experian, we aim to help promote greater transparency and responsible lending for both the borrower and the lender, while providing users with the opportunity to further build their credit.
Jennifer Schulz, CEO of Experian North America, added:
We applaud Apple for taking this meaningful first step and look forward to working with other leading BNPL providers to drive greater transparency that will benefit lenders and consumers alike.
In the dynamic landscape of mobile payments, the ascent of apps like Apple Pay and Google Pay is hard to overlook. Recent
stats reveal a staggering $53 billion global market in 2022. These apps, including heavyweights like Apple Pay and PayPal, have become household names, boasting a combined user base of 3.37 billion.Now, amidst this surge, the US Consumer Financial Protection Bureau (CFPB) has proposed
a substantial regulatory shift. The plan is to subject the digital payment and smartphone wallet services of tech giants such as Google, Apple, PayPal, and Block’s CashApp to a level of supervision akin to traditional banks.
