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.

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