Financial tools always shift, and a loan is just another form of paying later.
Apple on Monday announced plans to discontinue its Apple Pay Later program, which launched in October 2023. The program ended on Monday, though customers who have existing Apple Pay Later loans will be able to continue to pay them off and manage them through the Wallet app.
Apple offered the following comment as to the change:
“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.”
The Apple Pay Later program launched last October and was only available in the United States, but had been available in a testing capacity since March 2023. The program was available in the Wallet App, and allowed customers to split a purchase made with Apple Pay into four equal payments over a six-week period, with no interest or fees. Apple Pay Later was available on purchases made on an iOS device using Apple Pay, and was limited to merchandise priced between $75 and $1,000. Each purchase required a separate loan application and approval.
Apple has yet to provide a specific reason as to why it is discontinuing the Apple Pay Later program, but given its decision to end its partnership with Goldman Sachs, the company that handles the Apple Card, the Apple Savings account, and Apple Pay Later, ending Apple Pay Later means that Apple does not need to worry about replacing that functionality with a future partner.
Apple has announced that iOS 18 will allow users to access installment financing options from their bank when using Apple Pay, which will replace the Apple Pay Later program. Apple Pay will also gain support for viewing rewards or points balances in Wallet and redeeming them with purchases.
Stay tuned for additional details as they become available.