Apple Kills Off Its Buy Now, Pay Later Service Service Barely A Year After Launch

NEW YORK — Apple is abandoning its purchase now, pay later service, known as Apple Pay Later, less than a year after its first debut in the United States, and will rely on industry leaders such as Affirm and Klarna.

It’s an admission from a firm recognized for creating successful products that are starting a financial services business from scratch, as Apple has done for several years, is challenging and competitive.

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Apple Kills Off Its Buy Now, Pay Later Service Service Barely A Year After Launch

Apple Pay Later, introduced with fanfare in March 2023, allows iPhone consumers to split purchases of up to $1,000 into four equal installments with no fees or interest. The program was Apple’s response to the growing global popularity of purchase now, pay later services, which were viewed as a significant threat to companies such as Klarna, Affirm, and others.

However, Apple Pay Later was only available where Apple Pay was accepted, whereas the other buy now, pay later providers had strong integration with millions of merchant websites.

In recognition of how popular purchase now and pay later services have grown, Apple announced at its developer conference this month that it will begin allowing banks to provide buy now and pay later plans to their clients via Apple Pay and Apple Wallet. Affirm would be integrated directly into Apple Wallet, allowing Apple customers to open an Affirm account instantly.

Apple | Linked In

Apple Kills Off Its Buy Now, Pay Later Service Service Barely A Year After Launch

“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.,” Apple stated late Monday. “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.”

Despite unveiling plans to integrate Affirm directly into Apple Wallet earlier this month, Apple executives stated that Apple Pay Later was still in the works.

Apple Pay Later was unique since Apple needed to establish its bank to provide loans. The Apple Card is issued by Goldman Sachs, which means that Goldman selects who is accepted and what spending limits each user has.

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Apple Kills Off Its Buy Now, Pay Later Service Service Barely A Year After Launch

Apple will no longer provide new Apple Pay Later loans, but customers who already have them will be able to manage them using Apple Pay.

SOURCE – (AP)