Apple Inc. announced it is discontinuing its Pay Later program, which allowed customers to make purchases on installment plans. The tech giant is shifting its focus to integrating third-party installment loan services from providers like Affirm Holdings Inc. and Citigroup Inc. into its upcoming iOS 18 software.
Starting later this year, Apple users worldwide will be able to access installment loans through credit and debit cards, as well as various 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 US,” a spokesperson stated.
Apple launched its Pay Later program in the US last year, using an in-house platform where the company itself issued loans to customers via a new subsidiary. However, Apple still relied on Goldman Sachs Group Inc. and MasterCard Inc. to help handle the process.
The new installment loan services will be available globally through the Apple Pay platform, and users with open loans can continue to manage them within the Wallet app. “Our focus continues to be on providing our users with easy, secure, and private payment options with Apple Pay,” the company said, “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.”
This strategic shift marks a retreat from Apple’s previous efforts to offer more financial services in-house, underscoring its commitment to leveraging partnerships to enhance the Apple Pay experience for its global user base.
