Apple is Shutting Down Apple Pay Later Just Months After Launch

In a surprising turn of events, Apple is shutting down its buy now, pay later service, Apple Pay Later, just months after its full launch in October 2023. The company confirmed this decision to 9to5Mac, marking a significant shift in its financial services strategy.

Apple Pay Later allowed users to take out "pay later" loans, which could be repaid in four installments over six weeks. However, Apple is now transitioning to offering installment loans through credit cards, debit cards, and lenders when checking out with Apple Pay later this year.

Apple’s Official Statement

Here is Apple’s full unsigned statement, provided to 9to5Mac:

Apple has not yet responded to a request for comment from The Verge. However, an Apple support document notes that "Apple Pay Later is no longer offering new loans" but assures that "existing Apple Pay Later loans and purchases are not affected."

The Brief History of Apple Pay Later

Apple Pay Later was originally announced alongside iOS 16, generating excitement for its innovative approach to short-term financing. However, it was not included in the initial iOS 16 release. The company began an early access phase in March 2023, sending invitations to randomly selected users before launching the service widely in the U.S. in October 2023.

Transition to Global Installment Loans

Apple’s shift from Apple Pay Later to a broader installment loan offering aims to provide more flexible payment options on a global scale. This new direction involves collaboration with Apple Pay-enabled banks and lenders, expanding the reach and accessibility of installment loans to more users worldwide.

Impact on Current Users

For users currently utilizing Apple Pay Later, Apple assures that existing loans and purchases will not be affected by this change. However, the service will no longer be available for new loans. Users looking for flexible payment options will need to transition to the new installment loan offerings available through Apple Pay.

Conclusion

The closure of Apple Pay Later marks a significant pivot in Apple’s approach to financial services. By partnering with banks and lenders to offer installment loans globally, Apple aims to provide a more comprehensive and accessible payment solution for its users. While the sudden shutdown of Apple Pay Later may come as a surprise to many, it reflects Apple’s ongoing commitment to innovation and user-centric solutions in the financial space.

Stay tuned to Kushal Bharat Tech News for more updates on Apple’s evolving services and other tech industry developments.