Apple has announced the discontinuation of its buy-now-pay-later program, Apple Pay Later. This decision comes as the tech giant plans to introduce installment loans through third-party companies and financial institutions later this year. The Apple Pay Later program allowed customers to make purchases online and pay in four interest-free installments up to $1,000. However, the program did not meet the success Apple had hoped for and did not align with the company’s overall strategy.
In a statement to CNBC, an Apple spokesperson revealed that users globally will soon have access to installment loans through credit and debit cards as well as lenders when checking out with Apple Pay. This move will result in the discontinuation of the Apple Pay Later program in the United States. Apple aims to provide users with more options for installment plans at checkout through financial intermediaries in a greater number of countries than previously available with Apple Pay Later.
Despite the discontinuation of Apple Pay Later, users who currently have open loans will continue to have access to features to manage and pay their loans. The program allowed users to apply for loans within the iPhone Wallet app, and those approved would see a “Pay Later” option when checking out online. Unlike other Apple financial products like Apple Card, the Apple Pay Later program involved Apple taking on more of the financial backend, including credit checks and loan decisions, rather than relying entirely on financial partners.
Apple’s decision to discontinue Apple Pay Later highlights the fact that not every new fintech feature or product launched by the company is guaranteed success. The move likely indicates a shift in focus towards offering a broader range of financial services through Apple Pay, while ensuring secure and private payment options for users. Apple affirms that its priority with Apple Pay is to enable secure and private payments, and the introduction of a new global installment loan offering aligns with this goal.
As Apple looks to expand its financial services offerings, the discontinuation of Apple Pay Later may signal a strategic realignment within the company. Moving forward, users can expect to have access to installment loans at checkout through various financial intermediaries and lenders, enhancing the overall payment experience on Apple Pay. Despite the closure of the Apple Pay Later program, Apple continues to innovate and evolve its financial services offerings to meet the changing needs of its user base.
