Apple Goes Deeper Into Finance With Buy Now, Pay Later Offering

Tech giant will approve borrowers and fund loans itself rather than rely on a bank

Apple Inc. tiptoed into finance with Apple Pay and the credit card it launched three years ago with Goldman Sachs Group Inc. Now it is going all in.

The tech giant is launching a buy now, pay later offering in the U.S. later this year that will allow consumers that shop with Apple Pay to split purchases into four payments every two weeks.

Apple will underwrite the loans and fund them, which also means absorbing losses when borrowers fail to repay.

An Apple subsidiary has obtained lending licenses in most states to offer the new payment plans, called Apple Pay Later.

Big technology companies have long eyed finance as a way to deepen their relationships with customers.

But most have tapped banking and financial-technology partners to handle the nitty-gritty of vetting customers and dealing with the raft of regulations that surround financial products.

Apple is doing things differently this time, convinced it has the data and technology it needs to approve customers without risking big losses, according to people familiar with the matter.

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