Apple Halts BNPL Service in the US

Apple has announced the discontinuation of its “Buy Now, Pay Later” (BNPL) service, Apple Pay Later, in favour of a new instalment loan offering set to launch later this year.

This decision comes just 15 months after the tech giant introduced Apple Pay Later in the US. The service allowed users to borrow between $50 and $1,000 and repay the amount over four instalments within six weeks. Despite a general rollout of the service in October of last year, Apple is now shifting its focus towards a more comprehensive instalment loan program.

Apple plans to implement this new service through a series of global partnerships. Collaborations include ANZ in Australia, CaixaBank in Spain, HSBC and Monzo in the UK, and Citi, Synchrony, Affirm, and Fiserv in the US. Additionally, Apple has partnered with Spanish banking giant Santander’s digital consumer finance platform Zinia to offer split and deferred payment options to its customers in Germany.

The shift to a global instalment loan service represents a significant pivot in Apple’s approach to consumer lending. The company aims to leverage its extensive network of banking partners to provide more flexible and accessible payment options to its users worldwide.

In a statement, Apple confirmed that it will no longer offer Apple Pay Later in the US as it prepares to roll out the new instalment loan service. “This solution will enable us to bring flexible payments to more users in more places worldwide, in collaboration with Apple Pay-enabled banks and lenders,” Apple said. They also noted their continued commitment to providing users with easy, secure, and private payment options with Apple Pay.