Apple has announced the discontinuation of its "buy now, pay later" service, Apple Pay Later, just months after its full rollout in the United States in October 2023. The company plans to replace it with new installment loan features available globally later this year.
The End of Apple Pay Later
Apple Pay Later, introduced alongside iOS 16 and launched widely in the US in October 2023, allowed users to take out loans payable in four installments over six weeks with no fees or interest.
Despite its initial promise, Apple has decided to discontinue the service. According to an Apple support document:
"Apple Pay Later is no longer offering new loans. Existing Apple Pay Later loans and purchases are not affected."
New Installment Loan Features
(Credit: Apple)
Starting later this year, Apple Pay users worldwide will have access to installment loans offered through credit and debit cards, as well as other lenders.
This new feature aims to provide more flexible payment options in collaboration with Apple Pay-enabled banks and lenders.
The rollout will begin in Australia with ANZ, in Spain with CaixaBank, in the UK with HSBC and Monzo, and in the US with Citi, Synchrony, and issuers with Fiserv.
Focus on Global Expansion
Apple's decision to end Apple Pay Later in favor of a more globally accessible installment loan service underscores its commitment to expanding flexible payment options.
The new features will allow users to view and redeem rewards and access installment loans directly through the Apple Pay checkout experience on iPhone and iPad. These changes are expected to enhance the convenience and security of Apple Pay transactions for users worldwide.
Editor's Comments
The abrupt discontinuation of Apple Pay Later, despite its recent launch, indicates Apple's strategic pivot towards a more comprehensive and globally inclusive financial service.
The new installment loan features promise to offer greater flexibility and accessibility, aligning with Apple's broader vision of seamless, secure, and private payment solutions.
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