With immediate effect, Apple Inc. has announced that its Apple Pay Later service will be discontinued in favor of a new global installment lending program. The change is intended to give people outside of the US more flexible payment options.

Introduction and Initial Launch

When Apple Pay Later was first released as a preview in March 2023, customers could borrow money between $50 and $1,000 and pay it back over the course of six weeks in four equal installments without incurring any fees or interest. By October 2023, the service had been completely implemented for all iPhone users in the United States, offering a smooth method of managing loans and payments via the Wallet app on iPhones and iPads.

Apple Pay Later was created to provide a simple and open financing alternative with no interest or hidden costs. Customers looking for flexible payment options were pleased with the feature's direct integration with Apple Pay, which let them divide their purchases into manageable amounts.

Discontinuation and Future Plans

Despite its initial success, Apple has decided to discontinue Apple Pay Later as of today.

In a statement made to 9to5Mac, Apple confirmed the end of the service, stating, "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 loans under Apple Pay Later will still be honored and can be paid off through the Wallet app, ensuring a smooth transition for current users.

Global Expansion and New Features

The forthcoming global installment loan feature marks a significant shift in Apple's payment strategy. Apple aims to introduce this new feature later this year, starting with initial rollouts in Australia with ANZ, in Spain with CaixaBank, in the U.K. with HSBC and Monzo, and in the U.S. with Citi, Synchrony, and other issuers through Fiserv. Additionally, U.S. users will have the option to apply for loans directly through Affirm when checking out with Apple Pay​.

This expanded offering will allow users to view and redeem rewards and access installment loans from eligible credit or debit cards when making purchases online or in-app using their iPhones and iPads. These features will be available for integration by any Apple Pay-enabled bank or issuer in supported markets.

During the recent WWDC, Apple emphasized its commitment to enhancing the flexibility and choice available to users when making payments. The company highlighted that these new capabilities would be available later this year, providing more users globally with the convenience of installment payments.

Market Implications

The discontinuation of Apple Pay Later, which lasted 447 days from its preview in March 2023 and only eight months from its full launch in October 2023, reflects Apple's broader ambition to streamline its payment services and expand its reach globally. By partnering with established banks and lenders, Apple aims to offer a more versatile and widely accessible installment loan feature.

This strategic move is expected to enhance the user experience by providing more payment options and expanding the availability of flexible financing solutions to a global audience. As Apple continues to innovate and adapt its services, the upcoming global installment loan feature is poised to set a new standard in the digital payment landscape, further solidifying Apple Pay's position as a leader in secure and convenient payment solutions​​.