Apple Now Rolling Out Its Buy Now, Pay Later Offering (BNPL)

03/29/2023 CUToday

CUPERTINO, Calif.–Apple is finally launching Apple Pay Later, its version of the buy now, pay later (BNPL) offerings that have taken hold over the past several years and eroded credit card volume in the process.

In announcing the offering, Apple said users can use the service to apply for Pay Later loans of $50 to $1,000 and then repay those loans through four payments over the course of six weeks with no interest or fees.

Apple Pay Later exists within the Apple Wallet and is designed to allow borrowers to avoid paying the full price for a product right away. Apple announced the service in 2022, but its launch was delayed due to what were called “technical and engineering issues.”

‘No Impact on Credit,’ But…

According to Apple, users can apply for a loan within the Apple Wallet “with no impact to their credit,” but the company notes in the fine print that the Pay Later loan and payment history “may be reported to credit bureaus and impact their credit,” the Verge reported.

Once approved for a loan, users will start seeing the Pay Later option at checkout in apps and online on the iPhone and iPad. Apple further said in a statement that users will be able to view and manage their loans within the Wallet app and that they’ll receive notifications when payment is due.

The service is not yet available to everyone. According to Apple, “randomly selected” users will receive invites to obtain early access to Apple Pay Later. The service is only available in the U.S. and for online and in-app purchases on iOS 16.4 and iPadOS 16.4.

Apple Handling Financial Side, Too

Unlike its earlier partnership with Goldman Sachs when it launched its credit card, with the BNPL offering the company will be handling the financial side, as well, through a new subsidiary, Apple Financing LLC, which the company says “is responsible for credit assessment and lending.”

The company did, however, partner with the BNPL program Mastercard Installments to enable Apple Pay Later, while “Goldman Sachs is the issuer of the Mastercard payment credentials,” according to the Verge.com analysis.

Apple Financing LLC will begin reporting Pay Later loans to credit bureaus starting in the fall, the company said.
Concern by Credit Unions

BNPL solutions such as that from Apple have raised strong concerns within credit unions for numerous reasons, including the loss of credit card transactions/loans by members, and the fact members can get into financial trouble due to too many BNPL purchases without that debt appearing on credit reports.

Numerous efforts have been announced or are underway within CUs to respond with BNPL financing solutions of their own.

Comments

New York Stock Exchange building venue for 24/7 tokenized stock and ETF exchange

The New York Stock Exchange (NYSE), via its owner Intercontinental Exchange (ICE) , is building a new digital trading venue for 24/7 trading of tokenized stocks and ETFs, using blockchain and stablecoin-based funding for instant settlement, aiming to modernize markets by running parallel to the traditional exchange. This platform will support native digital securities and traditional shares as tokens, allowing for continuous liquidity and integrating digital assets into mainstream finance, with plans to launch later in 2026 after regulatory approval. Key Features of the New NYSE Platform: 24/7 Trading: Operates continuously, unlike the traditional exchange's weekday hours. Instant Settlement: Transactions settle immediately, moving away from the current T+1 (trade date plus one day) model. Stablecoin-Based Funding : Uses stablecoins (digital tokens pegged to fiat currency like the USD) for funding and collateral, streamlining processes outside banking hou...

Read Complete Article HERE>»

Breaking: NCUA Moves to Remove a Major Barrier to Board Service

NCUA just proposed a rule that would allow federal credit unions to reimburse or directly pay reasonable dependent care costs for volunteer officials when those costs are incurred while attending board meetings or performing official duties. Childcare and eldercare costs are real barriers to serving on a board — especially for working professionals, single parents, and caregivers. At the same time, expectations for board engagement, training, and oversight continue to rise. A few important guardrails remain: ✔️ Applies only to federal credit unions ✔️ Covers dependent care only — not lost wages or compensation ✔️ Requires written board policy and reasonable controls ✔️ IRS tax treatment still applies (talk to your CPA) Bottom line: this won't fix board recruitment challenges by itself, but it removes a real friction point for people who want to serve and simply can't absorb the added costs. NCUA is also asking for comments — including whether training and conferences...

Read Complete Article HERE>»

Sunday Reading - How pensions work

The Pension Promise How pensions work Colloquially speaking, pensions are retirement plans that result in employees receiving a fixed amount of money from their former employers during retirement, often for life (although the technical legal definition of pensions is significantly more nuanced ). Unlike “defined contribution plans” like 401(k) plans, “defined benefit plans” like pensions make it so the employer , rather than the employee, determines how much money is set aside for the plan and how it’s invested (often in stocks, bonds, and other assets). In retirement, monthly payouts include both the principal and investment earnings. Employers often use fact...

Read Complete Article HERE>»

Small credit union closures and mergers.

NCOFCU Podcast on the loss of small creditunions. Grant Sheehan CCUE | CEO-NCOFCU examines the rapid decline of small credit unions, why each closure matters to communities, and the threat this trend poses to the cooperative identity and tax protections of the movement. The episode explores practical solutions: larger credit unions acting as stewards, collaboration through shared resources and technology, and the advocacy work of the National Council of Firefighter Credit Unions to amplify every credit union's voice. Listen for a call to action on preserving community-focused financial cooperatives and strengthening the future of the credit union movement. Be sure to visit NCOFCU's "First Responders Credit Unions Academy" for your continued credit union education and certification in meeting N C U A’s requirements. ================================================= Remember, you're not alone with NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional f...

Read Complete Article HERE>»

NCUA Issues 2026 Supervisory Priorities Letter to Credit Unions

Alexandria, VA (January 14, 2026) ― The National Credit Union Administration (NCUA) today announced its 2026 Supervisory Priorities, which continue the agency’s policy of “No Regulation by Enforcement,” while prioritizing safety and soundness. This policy underscores NCUA’s commitment to providing clarity and transparency in its oversight. The letter outlines NCUA’s priorities for the year and provides information to help credit unions prepare for examinations. This year, the agency will continue to focus on risk-based supervision, tailoring the examination scope to the credit union’s unique risk profile. Key Highlights of the 2026 Supervisory Priorities: Risk-Focused Examinations: Examiners will concentrate on areas posing the greatest risk to credit union members, the credit union system, and the Share Insurance Fund. Balance Sheet Management and Lending: With loan performance at its weakest point in over a decade, examiners will review credit risk management practic...

Read Complete Article HERE>»

What Could Tokenized Deposits Mean for CUs?

WASHINGTON—Noting that the FDIC has expressed support for tokenized deposits as insured bank liabilities, not experimental digital assets, a new analysis offers some insights into what that could mean for financial institutions, credit unions and the market in 2026 and beyond. As PYMNTS Intelligence pointed out in its report, regulatory clarity reduces risk for banks moving from pilots to live deployments, and large banks and infrastructure providers are already testing real-world tokenized deposit use cases. “At its simplest, tokenization converts an existing claim into a digital representation on a distributed ledger,” the report explained. “The underlying asset does not change, but the infrastructure that tracks ownership and settlement does. In banking, that distinction is critical. Tokenized deposits do not create new money. They represent traditional bank deposits, issued and redeemed by regulated institutions but designed to operate on modern, programma...

Read Complete Article HERE>»

Half of Small Biz Owners See a Risk of Failure by Fall if Conditions Don’t Improve

BOSTON–A new survey of small business owners finds nearly half say their businesses are at risk of failing by the fall of this year unless economic conditions improve significantly. According to Alignable's Small Business Revenue Report , which is based on a poll of 4,392 randomly selected small business owners conducted from June 10-July 13, 2022, along with historic data from 680,000 surveyed since March 2020, key highlights include: 47% of small business owners (SMBs) say they're businesses are at risk of closing by Fall of '22, unless economic conditions improve significantly That's up 12 percentage points from last summer, when only 35% were concerned about economic issues forcing them to shut down, Alignable said. And SMBs in key industries face even bigger problems: 59% of retailers are at risk, along with 52% in construction, 51% in the automotive sector, and 50% of restaurant owners. Suppo...

Read Complete Article HERE>»

Fed Minutes Indicate Rate Increases Now on Hold; Cut Could Come in 2024

WASHINGTON–While Federal Reserve officials indicated they remain open to the possibility of again raising rates, minutes released from the Fed’s October meeting show they are more likely to keep rates steady--and one credit union economist sees potential for a rate cut in 2024. “All participants agreed that the committee was in a position to proceed carefully,” said the minutes of the Oct. 31-Nov. 1 meeting state. “Participants expected that the data arriving in coming months would help clarify the extent to which” a slowdown in inflation was continuing amid higher borrowing costs, according to the minutes. The Fed’s Open Market Committee is set to meet again on Dec. 12-13, but few expect any rate increase to be considered. "The minutes from the October FOMC meeting reaffirm that the committee believes monetary policy is currently restrictive,” said NAFCU VP-Research Curt Long. “Given the significant moderation in inflation in 2023, NAFCU believes the FOMC i...

Read Complete Article HERE>»

Retirement Notice: Clint Hartmann CEO of Houston Texas Fire Fighters FCU is Retiring!

The Board of Directors of Houston Texas Fire Fighters FCU has announced that Clint Hartmann is retiring in March 2016 as President/CEO after 12 years of distinguished service. After graduating with his MBA and working several years in finance and accounting, Hartmann began his credit union career at Tropical Telco FCU (now Tropical Financial CU) in 1983 as Assistant Controller. Over the next 25 years, Hartmann served as President and CEO of credit unions with the Martin Marietta and the University of South Florida, where he learned to respect and appreciate the membership aspect of the credit union philosophy. He was named President and CEO of HTFFFCU in 2004. Hartmann cites that his biggest challenge as CEO was navigating through the recent recession and collapse of the corporate credit union network, a challenge that hurt many credit unions throughout the country. “I am proud that we managed to work through these challenges while maintaining positive earnings and capital growth. We a...

Read Complete Article HERE>»

Firefighters First Credit Union’s Fire Family Foundation Provided Nearly $104,000 in Assistance to CA Firefighters and Fire Families in 2014

LOS ANGELES, CA -- As the charitable hand of the Los Angeles-based Firefighters First Credit Union, Fire Family Foundation distributed almost $104,000 in assistance to firefighters and fire families in 2014, providing hope and comfort to those in need. Serving firefighters, their families and fire victims, the Foundation ensures donations go directly to those in need; assistance is distributed statewide and supports numerous individuals and organizations. The Foundation assisted many in 2014, including: · Daughter of a firefighter, three -year-old Cecilia has been battling cancer over half her life; · The family of three-week old Harper who needed to be airlifted for life-saving heart surgery; her daddy too is a firefighter; · Veteran firefighter Valerie who is battling cancer; the Foundation raised funds and participated in a volunteer work day to help with needed home chores and to create a backyard awning to help in her recuperation from intense chemotherapy; · The family of Roger...

Read Complete Article HERE>»

First-responder Credit Union Newsroom

Search This Blog