Apple CEO Tim Cook gestures during the annual developer conference event at the company’s headquarters in Cupertino, California, U.S., June 10, 2024.
Carlos Barria | Reuters
Apple said Monday that it has stopped issuing loans through Apple Pay Later, the buy now pay later program that launched last year.
This move comes after Apple said it will start allowing installment loans later this year in the Apple Pay payment process through third-party companies, such as Confirmand credit and debit cards from issuers, such as Citigroup.
Apple said it will no longer issue Apple Pay Later loans, which allow customers to buy products online and pay in four interest-free installments, for up to $1,000. Discontinuation of use is a sign that not everyone new fintech product or feature that Apple launches will be successful or consistent with the overall strategy of the iPhone manufacturer.
“Starting later this year, users globally will be able to access installment loans offered through credit and debit cards as well as lenders,” an Apple spokesperson told CNBC. pay with Apple Pay”. “With the introduction of this new global installment loan service, we will no longer offer Apple Pay Later in the US”
Apple said users who want installment plans at checkout will have access to them through other financial intermediaries in more countries around the world than Apple Pay Later, which is only available in the United States.
Apple says its priority with Apple Pay, its brand of online and contactless payment software, is to enable secure and private payments. Users with open loans will continue to have access to Apple Pay Later features to manage and pay off their loans, Apple said.
Before the shutdown, Apple Pay Later allowed users to apply for loans in the iPhone Wallet app, and approved users would see a “Pay later” option when checking out online.
The process notably involves Apple taking over more financial backends than some of its other products, like the Apple Card. For this program, Apple did some of its own credit checking and lending decisions, rather than processing it entirely through financing partners. Apple loans have issued by a wholly owned subsidiary.
