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Apple Shutting Down Apple Pay Later Service
Apple has decided to discontinue its Apple Pay Later service, a “buy now, pay later” loan program that was launched in the United States in October 2023. The tech giant announced this move in a statement to 9to5Mac on Monday. The company stated that it would be replacing the service with loan options from eligible credit and debit cards, as well as Affirm.
Users’ Continued Access to Current Loans
According to Apple’s statement to 9to5Mac, users with existing loans through Apple Pay Later will still be able to manage and pay off their loans using the Apple Wallet app. The service allowed users to make purchases between $75 and $1,000 in four payments over six weeks, with no interest, fees, or impact on credit scores.
Despite the convenience it offered, Apple did not provide a specific reason for discontinuing its first in-house banking service. The sudden retreat from Apple Pay Later has left many users puzzled about the future of Apple’s financial services.
Apple’s Future Payment Plans
Apple announced that, starting later this year, users globally will have access to installment loans through credit and debit cards, as well as lenders, when using Apple Pay. This new global installment loan offering will replace Apple Pay Later in the U.S. Apple’s focus remains on providing secure and private payment options, ensuring flexible payments for users worldwide.
While Apple has been expanding its presence in the financial sector, Apple Pay Later was the only service directly operated by the company. Other financial products, such as savings accounts and credit cards, were offered through partnerships with Goldman Sachs and Mastercard. Apple Pay Later, however, issued loans through Apple’s own subsidiary, Apple Financing LLC, signaling the company’s commitment to banking services.
Despite repeated requests for comment, Apple has not responded to Gizmodo regarding the discontinuation of Apple Pay Later. This move comes just eight months after the service’s launch, raising questions about the stability of Apple’s banking ventures.
Transition to New Loan Providers
Last week, Apple revealed that U.S. users can now apply for loans directly through Affirm when using Apple Pay. This development follows the announcement of new features coming to Apple services this fall. The decision to integrate external loan providers like Affirm suggests a shift away from Apple’s internal banking initiatives.
Apple initially introduced Apple Pay Later at WWDC 2022 as part of its ambitious financial services expansion. However, recent challenges within Apple’s banking division, including internal conflicts at Goldman Sachs over the partnership, have cast doubts on the future of Apple’s financial ventures.
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