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Apple Pay Later

Apple discontinues buy now, pay later service in US

Apple announced the discontinuation of its “buy now, pay later” (BNPL) service, Apple Pay Later, in the United States. BNPL services, which have gained significant popularity in recent years, allow consumers to split the cost of a purchase into smaller, more manageable installments over time, often with little or no interest. This payment method has appealed particularly to younger generations and those seeking more flexible financing options.

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Apple introduced Apple Pay Later in March 2023, integrating it into the Wallet app on iPhones and iPads. This allowed users to seamlessly apply for and manage loans directly within their devices, with a simple application process and quick approval decisions. Apple Pay Later offered loans up to $1,000, with repayment options spread across four installments over six weeks, all without interest or fees.

While Apple has not disclosed the exact number of Apple Pay Later users, early data indicated that it quickly gained traction in the market. Within the first three months of its launch, nearly 20% of BNPL customers in the U.S. reported using Apple Pay Later, making it a strong competitor among established players like PayPal and Afterpay. The service appealed to users due to its convenience, seamless integration with AppIe Pay, and lack of interest or fees. 

The decision to discontinue AppIe Pay Later in the U.S. comes as Apple shifts its focus to a new global installment loan offering. This new service, expected to launch later this year, will be accessible through credit and debit cards, as well as other lenders, during checkout with AppIe Pay. It aims to provide a more comprehensive and flexible payment solution for users worldwide, potentially reaching a larger audience than AppIe Pay Later.

“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 said.

For existing AppIe Pay Later users in the U.S., the impact is minimal. Open loans can still be managed through the Wallet app until they are fully repaid. However, new loans cannot be initiated. The transition to the new global installment loan offering is expected to be smooth, with Apple providing updates and guidance to users as the launch date approaches.

Overall, the discontinuation of AppIe Pay Later in the U.S. marks a strategic shift for Apple in the BNPL market. While the service proved popular during its short tenure, the company aims to provide a more comprehensive and globally accessible installment loan solution in the future. This move reflects the evolving landscape of financial services, as companies seek innovative ways to meet consumer demand for flexible payment options.

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Driven by wanderlust and a passion for tech, Sandra is the creative force behind Alertify. Love for exploration and discovery is what sparked the idea for Alertify, a product that likely combines Sandra’s technological expertise with the desire to simplify or enhance travel experiences in some way.