Apple discontinues 'Pay Later' service just months after launch
Apple has announced the discontinuation of its 'buy now, pay later' service, 'Apple Pay Later,' just months after its launch in the US. The service, introduced in October 2023, enabled users to take out loans that could be repaid in four installments over six weeks. The company confirmed to 9to5Mac that it is no longer offering new loans through this service.
Apple to replace 'Pay Later' with global installment loan service
Apple plans to introduce a new global installment loan service later this year, which will replace the US-only 'Pay Later' feature. The company stated, "Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders when checking out with Apple Pay." This move signifies a shift away from Apple's own financial services toward third-party integrations.
Apple's iOS 18 to integrate third-party financial services
Apple's upcoming iOS 18 software will integrate third-party services such as Affirm Holdings and Citigroup. Users will also have the option to apply for loans directly through Affirm at checkout with Apple Pay. The company stated, "Our focus continues to be on providing our users with access to easy, secure, and private payment options with Apple Pay." The new services will be available globally via the Apple Pay platform.
Apple's discontinued 'Pay Later' loans will remain manageable
Apple has confirmed that users with open loans from the discontinued 'Pay Later' service will still be able to manage them within the Wallet app. The 'Pay Later' program was launched last year in the US using an in-house platform, with Apple issuing loans to customers via a new subsidiary. The process was supported by Goldman Sachs Group and MasterCard. The new installment loan feature is expected to roll out later this year.
