Apple announced on Monday that it has stopped issuing loans through Apple Pay Later, its buy-now-pay-later program that was launched last year. This decision comes as the tech giant plans to allow installment loans in the Apple Pay checkout process later this year, through third-party companies like Affirm and credit and debit cards from issuers like Citigroup. Apple Pay Later loans allowed customers to make purchases online and pay in four interest-free installments, up to $1,000. However, the discontinuation of this service suggests that not every new fintech feature or product from Apple is successful or aligns with the company’s overall strategy.
In the upcoming installment loan offering, users worldwide will have access to loans through credit and debit cards, as well as lenders, when checking out with Apple Pay. This global installment loan option will replace Apple Pay Later in the U.S. market, expanding the availability of installment plans to more countries than before. Apple emphasized that its priority with Apple Pay is to facilitate secure and private payments, ensuring user data and financial information remains protected. Users with existing loans will still be able to manage and pay their loans through Apple Pay Later features, even after the program has been discontinued.
Before its discontinuation, Apple Pay Later allowed users to apply for loans within the iPhone Wallet app, and approved users could select the “Pay Later” option when making online purchases. Unlike some of Apple’s other financial products, such as Apple Card, the Apple Pay Later process involved the tech giant taking on more responsibility in the financial backend. Apple conducted its own credit checks and made loan decisions internally, rather than relying entirely on financial partners. The loans issued were done through a wholly-owned subsidiary of Apple, showcasing the company’s efforts to expand its financial services capabilities.
Apple’s decision to discontinue Apple Pay Later and shift towards offering installment loans through external financial intermediaries reflects the company’s commitment to enhancing its payment ecosystem and providing more flexibility to users. By partnering with third-party companies and expanding the availability of installment plans globally, Apple aims to cater to a wider audience and streamline the checkout process for customers using Apple Pay. This move also aligns with Apple’s broader strategy of offering secure and convenient payment solutions through its ecosystem of products and services, reinforcing its position as a leading player in the fintech space.
The introduction of the global installment loan offering through Apple Pay signifies a strategic shift in Apple’s approach to financial services, as the company seeks to leverage its vast user base and digital platforms to provide innovative and convenient payment solutions. By discontinuing Apple Pay Later and focusing on partnerships with established financial institutions and fintech companies, Apple aims to offer a more diverse and robust set of financial products to its customers. This shift highlights Apple’s commitment to driving growth and innovation in the fintech sector, while maintaining its core values of privacy, security, and user experience.
Overall, Apple’s decision to discontinue Apple Pay Later and transition to offering installment loans through third-party partners underscores the company’s strategic evolution in the financial services industry. By expanding its payment offerings and collaborating with external lenders, Apple aims to provide a more comprehensive and seamless payment experience for its users. Moving forward, Apple is likely to continue exploring new opportunities in the fintech space, leveraging its brand strength, technological expertise, and global reach to drive innovation and growth in the digital payments sector. As the company continues to evolve its financial services offerings, users can expect additional enhancements and features that enhance the convenience, security, and flexibility of using Apple Pay for everyday transactions.
