Apple Shuts Down Pay Later Feature
Hey FinTech Fanatic!
Apple has announced the discontinuation of its "buy now, pay later" service, Apple Pay Later, which launched in the United States last year. Effective immediately, the service will no longer be available for new loans. However, current users can still manage their existing Apple Pay Later loans through the Wallet app.
In place of Apple Pay Later, Apple is introducing new global features to Apple Pay. These upcoming features, launching later this year, will allow users to access installment loan options from eligible credit or debit cards, as well as through Affirm.
Apple released a statement to 9to5Mac explaining the changes:
"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. With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S. 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."
Apple reassures that users with active Apple Pay Later loans can continue to manage and pay their loans through the Wallet app.
Apple Pay Later was first announced at WWDC 2022 and launched in the U.S. in March 2023 in preview, expanding to all users in October. The service allowed users to apply for loans ranging from $50 to $1,000, which could be split into four equal payments over six weeks, with no fees or interest.
Apple emphasizes that the new installment loan features coming to Apple Pay will be available in multiple countries. Apple Pay Later, in contrast, was only available in the U.S.
The ability to access installments from credit and debit cards will begin rolling out in Australia with ANZ, Spain with CaixaBank, the U.K. with HSBC and Monzo, and the U.S. with Citi, Synchrony, and issuers via Fiserv.
Additionally, users in the U.S. will be able to apply for loans directly through Affirm when using Apple Pay.
Pay Later’s life was extraordinarily short, having officially launched in late March 2023.
Ultimately, however, the move isn’t surprising, after last week’s announcement ar WWDC 2024 that users would be able to access loans through third-party app Affirm through Apple Pay.
Have a great day and I'll be back in your inbox with more news tomorrow!
Cheers,
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