Apple has made the decision to discontinue its buy now, pay later service called Apple Pay Later, just a year after its launch.
The company plans to rely on established industry players like Affirm and Klarna for buy now, pay later services, available wherever Apple Pay is accepted.
The big picture: Apple intends to integrate Affirm into Apple Wallet, while existing Pay Later loans will still be accessible through Apple Pay.
- The move indicates that Apple acknowledges the difficulties and intense competition involved in building a financial services business from scratch.
- Apple Pay Later was initially launched in March 2023, allowing iPhone customers to split purchases of up to $1,000 into four equal payments without fees or interest.
- However, the service was limited to locations where Apple Pay was accepted, while other buy now, pay later companies had integrated themselves into numerous merchant websites.
- Despite indicating plans for Apple Pay Later earlier this month, Apple has now decided to discontinue the service, focusing on providing secure and private payment options with Apple Pay.
What they’re saying: “With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.,” Apple said in a statement. “Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay, and this solution will enable us to bring flexible payments to more users, in more places across the globe, in collaboration with Apple Pay enabled banks and lenders.”
