Apple Halts Apple Pay Later Loans in the U.S.

Apple Halts Apple Pay Later Loans in the U.S.


Apple announced on Monday that it has ceased issuing loans via Apple Pay Later, its buy-now-pay-later service introduced last year. This decision follows Apple's plan to integrate installment loans into its Apple Pay checkout system later this year, utilizing third-party services like Affirm and credit/debit card issuers such as Citigroup.


Transition to Third-Party Installment Loans

The Apple Pay Later service allowed customers to purchase products online and pay in four interest-free installments for amounts up to $1,000. This discontinuation highlights that not every fintech innovation Apple introduces becomes a success or aligns with the company's broader strategic goals.


“Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay,” an Apple spokesperson said. “With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.”


Apple indicated that users seeking installment plans during checkout would be directed to other financial intermediaries, which will offer these options in more countries than Apple Pay Later, which was exclusively available in the U.S.


Ensuring Secure and Private Payments

Apple emphasized that its main goal with Apple Pay is to provide secure and private payment options. Users with existing Apple Pay Later loans will still have access to features that allow them to manage and repay their loans.


Previously, Apple Pay Later allowed users to apply for loans through the iPhone Wallet app, with approved users seeing a “Pay Later” option during online checkout. Unlike some of Apple's other financial products, like the Apple Card, this program involved Apple handling more of the financial backend operations, including conducting its own credit checks and loan decisions through a wholly-owned subsidiary.


By shifting to a global installment loan offering through third-party intermediaries, Apple aims to streamline its financial services and potentially reach a broader user base.