Apple to Close Down Pay Later Service, Its Affirm Competitor, After Year
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Apple Shuts Down Pay Later Program, Shifts Focus to Third-Party Installment Loans
Apple Inc. has announced the discontinuation of its Pay Later program, marking a significant shift away from its internal financial service ventures. This decision comes amid plans to incorporate third-party lending services into its forthcoming iOS 18 software.
Transition to External Loan Providers
Apple's Pay Later program, which allowed users to spread out payments for purchases up to $1,000 across four installments, will no longer be available. Instead, the company will collaborate with established financial service providers like Affirm Holdings Inc. and Citigroup Inc. These external services will be integrated into the new iOS 18, enabling users to access installment loans through various credit and debit cards during Apple Pay transactions.
Global Availability with New Installment Options
In a statement, Apple confirmed that later this year, customers worldwide would benefit from the new global installment loan services accessible via Apple Pay. This transition aims to expand the availability of flexible payment options to a broader audience through partnerships with banks and lenders enabled by Apple Pay.
Past Efforts and Future Focus
Apple initially introduced its Pay Later program in the US last year, leveraging an in-house platform and issuing loans through a newly created subsidiary. Despite this internal approach, the company still relied on financial giants Goldman Sachs Group Inc. and MasterCard Inc. for operational support. With the rollout of iOS 18, these new third-party financial services will be accessible globally, providing users with a seamless, secure, and private payment experience.
Continued Support for Existing Loans
Apple assured that users with existing Apple Pay Later loans could continue to manage their payments within the Wallet app. This assures a smooth transition for current users as Apple pivots towards a more expansive and collaborative financial service model.
