Apple has made a significant announcement regarding its financial services offerings. Effective immediately, Apple Pay Later, launched last year in the US for splitting purchases ($50–$1,000) into interest-free installments, is discontinued. This evolving approach focuses on integrating more diverse financial solutions within Apple Pay. Instead of direct loans, Apple will facilitate access to global installment loans (launching later this year) through credit and debit cards and lenders like Affirm.
The decision to end Apple Pay Later stems from Apple’s strategic shift towards integrating more diverse financial solutions into Apple Pay. Instead of directly offering loans through Apple Pay, Apple will facilitate access to installment loans globally later this year. This new approach will allow users to obtain installment loans through their credit or debit cards, as well as from selected lenders like Affirm. From the tech giant:
Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as 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 U.S.
Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay, 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.
Existing users with active Apple Pay Later loans can still manage and settle their payments through the Apple Wallet app. This feature will remain accessible to ensure continuity and convenience for current users.
Looking forward, Apple Pay will continue to evolve as a secure and flexible payment option. The upcoming enhancements will enable users worldwide to access installment loans directly through Apple Pay, thereby expanding financial flexibility and accessibility.
The new installment loan features will initially roll out in multiple countries, including Australia, Spain, the UK, and the US, with partnerships established with prominent financial institutions such as ANZ, CaixaBank, HSBC, Monzo, Citi, Synchrony, and Fiserv. This global expansion aims to provide more users with seamless and secure financial services through Apple Pay.
