Apple is shutting down its Buy Now, Pay Later service, Apple Pay Later—a little over a year since its launch. First released at WWDC 2022 and planned to become available in March 2023, this service allowed buying through installments, but now the company has decided to shut down Apple Pay Later immediately, as confirmed in a statement to 9to5Mac.
Later this year, Apple Pay users will have the ability to access installment loans directly in Apple Pay from a number of credit and debit card issuers, in addition to other lenders. This new feature will be available globally, first launching in Australia, Spain, the United Kingdom, and the United States. The aim was to expand payment flexibility in concert with participating Apple Pay-enabled banks and lenders.
Even though Apple Pay Later is being killed, the app will continue to permit existing users with open loans to track and pay for them. No new loans can be started, however. Apple says it is killing the product as part of a broader strategy to introduce new features in the Wallet app that support installment loans from third-party providers.
These capabilities will make Apple Pay even more flexible and convenient for end-users at checkout online and in-app. They can view and redeem rewards, seeing installment loan options from eligible credit or debit cards when they make a purchase with their iPhone or iPad. Endeavour: This is going to enrich the experience of Apple users at this moment in payment by integrating third-party financial services.
Apple has rolled out this new installment loan feature with the support of several financial institutions, which in the U.S. include Affirm, Discover, Synchrony, and Citi. Other international partners include ANZ in Australia, CaixaBank in Spain, HSBC and Monzo in the U.K., and issuers with Fiserv.
The news is seen as an indication of Apple’s retreat from the Buy Now, Pay Later market on its own. The company seems to focus mainly on the incorporation of third-party financial services, thereby offering users more choices and moving away from the direct supply of installment loans.
The Future of Apple’s Financial Services
Apple’s decision to quit Buy Now, Pay Later comes within the broader context of its goals for the financial sector. The company has been working towards more product offerings in this space, first by introducing the Apple Card, which aimed at helping users monitor and understand their money better. For instance, the Apple Card provides information on spending, rewards, and interest so that customers may understand and manage their finances better.
By moving to third-party installment loans, Apple can offer flexible payment plans without involving itself in the loan business. This move appears fully in line with Apple’s overall strategy of secure and private payment solutions via cooperation with large, reputable financial institutions to deliver services.
Besides, Apple’s efforts to enrich the Wallet app with new features pave the way for possible future developments, including the long-waited Apple Checking account. At the very least, such innovations could deepen Apple’s presence inside the financial services industry, giving users an all-inclusive bundle for money management in the right direction.
As Apple continues to change its financial offerings, the focus remains on ease of use, security, and flexibility—thereby maintaining the demand for Apple Pay to be positioned as a trusted and versatile payment platform.
