Apple Discontinues Apple Pay Later Program
Apple announced on Monday that it is discontinuing lending through its Buy Now, Pay Later program, Apple Pay Later, which was launched last year.
This move comes after Apple announced that it plans to allow deferred payments later this year in its checkout process through Apple Pay using third-party companies like Affirm, as well as credit and debit cards from issuers like Citigroup.
Apple stated that it will no longer be issuing Apple Pay Later credits, which allowed customers to buy goods online and pay for them in four interest-free installments for amounts up to $1000. The termination of the program is a sign that not every new fintech feature or product launched by Apple becomes successful or fits into the overall strategy of the iPhone maker.
New Global Installment Offering through Apple Pay
«Starting this year, users around the world will have access to installment plans offered through credit and debit cards, as well as lenders when making purchases through Apple Pay,» an Apple representative told CNBC. «With the introduction of this new global installment offering, we will no longer be offering Apple Pay Later in the U.S.»
Apple noted that users who want installment plans when making purchases will have access to them through other financial intermediaries in more countries around the world than with Apple Pay Later, which was only available in the U.S.
Apple stated that its priority with Apple Pay, the branded name for its contactless and online payment program, is to ensure secure and private payments. Users with open credits will continue to have access to Apple Pay Later features to manage and repay their credits, Apple said.
Before discontinuing the Apple Pay Later program, users could apply for credits in the iPhone Wallet app, and approved users saw the «Pay Later» option when making online purchases.
This process was significantly different from other Apple products, such as Apple Card, as Apple conducted partial credit checks and made credit decisions on its own, rather than solely through financial partners. Apple would issue Apple credits through its subsidiary.
