Apple Discontinuing Apple Pay Later, Ahead Of New Features Launching This Fall
Apple has officially announced that it will discontinue its “Buy Now, Pay Later” (BNPL) service, Apple Pay Later, which launched in the United States in 2023. The company confirmed that the service will no longer be available starting today. However, existing users with active loans will still be able to manage their repayments through the Wallet app.
As part of its evolving payment strategy, Apple will introduce new features later this year that will expand global access to installment loan offerings. These loans will be available through eligible credit and debit cards, as well as in partnership with the financial technology company Affirm. The upcoming changes will allow users around the world to access flexible payment options when checking out with Apple Pay, providing an alternative to the Apple Pay Later service, which was previously limited to U.S. customers.
In a statement provided to 9to5Mac, Apple clarified the shift in focus: “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 users with secure, private, and easy payment options with Apple Pay, while enabling more flexible payments across a wider range of global markets through partnerships with Apple Pay-enabled banks and lenders.”
For those who currently have an outstanding balance with Apple Pay Later, the company reassured users that they will still be able to manage and pay off their loans via the Apple Wallet app, just as they do today.
Launched initially in preview at WWDC 2022 and later rolled out more broadly in 2023, Apple Pay Later allowed users to split purchases between $50 and $1,000 into four equal payments over six weeks, with no interest or fees. However, Apple’s pivot to a more globally accessible installment loan service marks a strategic shift as the company seeks to broaden the scope of its payment services beyond U.S. borders.
With the anticipated rollout of new installment loan options, Apple aims to offer greater flexibility and more localized payment solutions, underscoring its continued commitment to enhancing the Apple Pay experience worldwide.
Apple has announced that it is officially discontinuing its “Buy Now, Pay Later” (BNPL) service, Apple Pay Later, which was launched just a year ago in the United States. The decision, effective immediately, marks the end of the service that allowed users to split their Apple Pay purchases into interest-free, four-payment installments. However, Apple emphasized that existing users with outstanding loans can continue to manage and pay off their balances through the Apple Wallet app.
This shift comes just ahead of the introduction of new payment features planned for later this year, which will expand Apple’s payment offerings globally. Instead of continuing Apple Pay Later, Apple will introduce a new suite of installment loan options through its existing Apple Pay platform, available in multiple countries around the world.
Apple Pay Later: A Short-Lived Service
Launched in preview at Apple’s WWDC 2022, Apple Pay Later was designed to allow U.S. users to access interest-free loans for purchases made with Apple Pay. The service, which was made generally available in October 2023, allowed customers to apply for loans ranging from $50 to $1,000 and break their payments into four equal installments over six weeks.
While Apple Pay Later offered a straightforward, fee-free way to manage purchases, its reach was limited, as the service was only available in the United States. Despite the growing popularity of BNPL services, especially among younger consumers, Apple’s decision to discontinue the service is part of a broader strategic shift in how the company intends to handle flexible payment solutions.
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The Future of Apple Pay and Installment Payments
In place of Apple Pay Later, the tech giant is focusing on expanding the flexibility of Apple Pay’s payment options globally. Starting later this year, Apple Pay users around the world will be able to access installment loan options from a variety of financial institutions, including credit and debit card issuers and partnerships with companies like Affirm. These new payment options will integrate seamlessly into the Apple Pay checkout experience, allowing users to split their payments for purchases over time, whether they are in-store or online.
“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,” Apple stated in a message to 9to5Mac. “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 users with access to secure, private, and easy payment options with Apple Pay.”
Global Reach and More Flexibility
Unlike the U.S.-only Apple Pay Later, the upcoming global installment loan offering will be available to users in multiple countries, making it a more inclusive option. The service aims to bring more flexibility to users worldwide by enabling installment payments not only via Apple Pay but also through the involvement of established financial partners. The shift to working with banks and third-party lenders is likely intended to streamline the process and increase the number of payment options available to customers, offering them more flexibility in managing their finances.
Apple has long emphasized privacy and security in its payment solutions, and the company reiterated its commitment to providing users with an easy and secure way to make purchases with Apple Pay. By introducing installment loan offerings via a broader set of financial partners, Apple intends to scale its payment services more effectively, bringing flexible payment options to more users in more regions.
What Does This Mean for Current Apple Pay Later Users?
For those who already have an outstanding loan through Apple Pay Later, the company reassured users that they will still be able to manage and pay off their loans via the Apple Wallet app. The company has emphasized that there will be no disruption to the repayment process, and existing balances will remain unaffected.
Although the service will no longer be available for new purchases, users who have taken out loans under Apple Pay Later can expect to continue their repayment schedule as initially planned.
Looking Ahead: Apple’s Vision for Payments
The discontinuation of Apple Pay Later may seem like a setback for the BNPL model. Still, it signals Apple’s more significant ambition to integrate more flexible payment solutions into the Apple Pay ecosystem. By broadening the range of financial options available globally, Apple hopes to enhance the user experience and offer more comprehensive solutions for managing payments over time.
As the company prepares to roll out its new features this fall, it will be interesting to see how the market responds to Apple’s global payment expansion and whether the latest offerings can capture a significant share of the growing BNPL and installment loan space.
With Apple Pay’s expanding influence in the financial services space, the shift away from Apple Pay Later reflects the company’s commitment to evolving its offerings and providing users with the best tools for managing their finances—on a global scale. Whether or not the new installment loan options can replicate the success of Apple Pay Later remains to be seen. Still, the company’s worldwide reach and its partnerships with financial institutions position it well for this next phase of growth in digital payments.
Frequently Asked Questions
Why is Apple discontinuing Apple Pay Later?
Apple has decided to discontinue Apple Pay Later to focus on expanding global installment loan options within Apple Pay. These new features will allow users worldwide to access flexible payment plans through credit and debit cards, as well as partnerships with financial institutions like Affirm. The goal is to bring more flexible and secure payment solutions to a broader audience across different regions.
When will Apple Pay Later be discontinued?
The service is being discontinued immediately. Users in the United States will no longer be able to access Apple Pay Later for new purchases, but those with existing loans will still be able to manage their repayments through the Apple Wallet app.
What will happen to existing Apple Pay Later loans?
If you have an active loan through Apple Pay Later, you will still be able to manage and pay off the loan through the Wallet app. Your repayment schedule will not be affected, and you will continue to make payments as agreed until the loan is paid in full.
Will I be able to use Apple Pay Later for new purchases?
No, Apple Pay Later will no longer be available for new purchases starting today. Apple is shifting its focus to new installment loan features, which will be available globally in the near future.
What are the new features Apple is focusing on instead of Apple Pay Later?
Apple is introducing a global installment loan offering that will allow users to access flexible payment options when checking out with Apple Pay. This will include installment loans from eligible credit and debit cards, as well as third-party lenders such as Affirm. These features will be available in multiple countries around the world, making installment payments more accessible to a broader audience.
Will the new installment loan options be available outside the United States?
Yes, the new installment loan features will be available globally. Unlike Apple Pay Later, which was only available in the U.S., the latest offering will allow users from multiple countries to split their payments into installments when using Apple Pay at checkout.
How will these new installment loans work?
Similar to Apple Pay Later, users will be able to split their purchases into installments over a set period. However, with the new global features, these installment loans will be offered through partnerships with credit and debit card issuers and third-party financial partners, such as Affirm, rather than being directly managed by Apple.
Will I still be able to use Apple Pay to make purchases without installment loans?
Yes, you can continue to use Apple Pay as usual for purchases without any changes. The discontinuation of Apple Pay Later only affects the ability to split purchases into installments. Apple Pay will still offer secure and private payment processing for one-time transactions.
Conclusion
Apple’s decision to discontinue its “Buy Now, Pay Later” (BNPL) service, Apple Pay Later, marks a significant shift in the company’s approach to flexible payment solutions. While Apple Pay Later was designed to offer a convenient, interest-free way for U.S. users to split purchases into manageable installments, the service’s limited availability and the broader industry landscape have led to a reimagining of Apple’s payment strategy.
The focus now shifts to a more expansive and globally accessible installment loan offering, which will integrate seamlessly with Apple Pay and be available through a broader range of financial institutions and partners, including credit and debit cards and companies like Affirm. By moving beyond a U.S.-only model, Apple aims to offer a more flexible, secure, and private payment experience to users worldwide, aligning with the company’s vision of simplifying financial services on a global scale.
