Apple Pay Later, the innovative service that allows eligible customers to split a purchase into four equal payments over six weeks without any interest or fees, has made a significant move. As of February 28, Apple Pay Later users in the US will have their buy now, pay later (BNPL) information reported to Experian, one of the major credit bureaus. This means that Apple Pay Later will be the first BNPL service to have its data included in credit reports.

This development marks a shift in how short-term loans like those offered through Apple Pay can impact credit scores. While existing traditional credit scores may not immediately reflect this change, future credit scoring models are likely to take this information into account.

Jennifer Bailey, Vice President of Apple Pay and Apple Wallet, highlighted the importance of this move for users’ financial health. By reporting Apple Pay Later loans to Experian, Apple aims to promote transparency and responsible lending practices while providing users with an opportunity to build their credit.

Jennifer Schulz, CEO of Experian North America, praised Apple for taking this step towards greater transparency and expressed eagerness to collaborate with other buy now, pay later providers in the future.

In the realm of mobile payments, apps like Apple Pay and Google Pay have seen tremendous growth. The global market for mobile payments is expected to reach $53 billion in 2022, with popular apps like Apple Pay and PayPal boasting a combined user base of 3.37 billion.

Amidst this rapid expansion, regulatory changes are on the horizon. The US Consumer Financial Protection Bureau (CFPB) has proposed increased oversight for digital payment services offered by tech giants such as Google, Apple, PayPal, and CashApp. These regulatory shifts aim to bring these services under similar supervision as traditional banks for enhanced consumer protection.