Apple announced the closure of the "Pay Later" feature
Apple announced that it will close its "Pay Later" program and no longer provide loan services. The program allowed users to repay shopping bills of up to $1000 in four installments. This move signifies Apple's retreat in providing financial services internally. Apple plans to integrate third-party services in the upcoming iOS 18 software, and global users will be able to access installment loan services when checking out with Apple Pay. Users with outstanding loans can still manage them in the Wallet app. Apple stated that their focus remains on providing users with convenient and secure payment options through Apple Pay
According to the information from Zhitong Finance and Economics APP, Apple Inc. (AAPL.US) announced on Monday that it will discontinue its "Pay Later" program, no longer offering loans for Apple Pay Later, which allowed users to repay shopping expenses of up to $1000 in four installments. This move signifies a retreat in the company's efforts to provide more financial services internally.
Apple took this action after announcing the integration of third-party services such as Affirm Holding (AFRM.US) and Citigroup (C.US) into the upcoming iOS 18 software.
A spokesperson stated in a release, "Starting later this year, global users will be able to access installment loans provided by credit cards, debit cards, and lending institutions when using Apple Pay for checkout. With the launch of this new global installment loan service, we will no longer offer Apple Pay Later in the United States."
Apple launched the Pay Later program internally in the United States last year, marking the first time Apple itself issued loans to customers through a new subsidiary, although it still relied on Goldman Sachs (GS.US) and Mastercard (MA.US) to assist in the process.
The new services in iOS 18 will be provided globally through the company's Apple Pay platform. Apple stated that users with outstanding loans will still be able to manage them in the Wallet app.
The company stated, "Our focus remains on providing users with convenient, secure, and private payment options through Apple Pay. This solution will enable us to collaborate with banks and lending institutions that support Apple Pay to bring flexible payment methods to more users in more places around the world."