[kirkbackus]

In the attached article

> After hovering around record lows for much of the pandemic, consumer delinquencies are rising across the industry.

> It lost slightly more than $1 billion in 2021 and $783 million in 2020, after accounting for operating expenses and money set aside to cover possible losses on loans

That seems like an enormous amount of money to support buy now and pay later

[dylan604]

Apple has enough cash reserves to be able to be a bank themselves, but I guess are much too smart to use their own money.

Is the buy now, pay later all of what this stems from? I have never looked into it, but I assumed they were also backing the Apple credit card which I consider totally different from each other.

[ayende]

It's more than that. Consider Apple's strongest advantage, it's brand.

If Goldman is the one handling the lending, it is also the one sending you to collections.

The PR damage to Apple's brand can be significant

[formercoder]

What's really shocking is that this number is post provision for future losses, which is a non cash accounting charge that the media often uses to make banks look worse. These are real losses.

[tedunangst]

Wait to see what the realized losses are. Banks are kinda infamous for huge preemptive write downs, then discovering "profits" when the loans pan out.

[formercoder]

I think it is that, I assume "money set aside to cover possible losses on loans" means income statement provision for future losses.

[tempest_]

The retailers love it though.

I even Amazon is getting in on it.