Apple has announced that it will no longer be offering loans through its buy-now-pay-later program, Apple Pay Later, in the United States. This decision comes as the tech giant plans to introduce installment loans through third-party companies and financial institutions later this year, allowing users to access loans when checking out with Apple Pay.
The Apple Pay Later program, which allowed customers to make purchases online and pay in four interest-free installments for products priced up to $1,000, will no longer be available. This move demonstrates that not every new fintech feature or product introduced by Apple is guaranteed success or fits into the company’s overall strategy.
According to an Apple spokesperson, users worldwide will soon have access to installment loans through credit and debit cards, as well as lenders, when using Apple Pay for transactions. This global installment loan offering will replace Apple Pay Later in the U.S., providing users in more countries with access to installment plans at checkout.
Apple emphasized that its main focus with Apple Pay is to ensure secure and private payments for users. Despite discontinuing Apple Pay Later, users with existing loans will still be able to manage and pay them off using the features provided by the program.
Before its discontinuation, Apple Pay Later allowed users to apply for loans directly within the iPhone Wallet app, with approved users seeing a “Pay Later” option when making online purchases. Unlike other Apple financial products, such as Apple Card, the program involved Apple taking on more responsibility for the financial backend, including conducting credit checks and making loan decisions in-house.
Overall, Apple’s decision to discontinue Apple Pay Later in the U.S. and transition to offering installment loans through third-party partners reflects the company’s commitment to evolving its financial services to better meet the needs of users globally. By expanding access to installment plans through Apple Pay, Apple aims to provide a seamless and secure payment experience for its customers around the world.