Apple stops offering “buy now, pay later” loans in the U.S.

On June 10, 2024, Apple CEO Cook made a gesture at the annual developers conference held at the company’s headquarters in Cupertino, California, USA.

Carlos Barria | Reuters

apple It said on Monday it had stopped issuing loans through Apple Pay Later, the buy now, pay later program launched last year.

Previously, Apple said it would begin allowing installment loans through third-party companies as part of its Apple Pay checkout process later this year, such as confirmas well as credit and debit cards from issuers such as Citigroup.

Apple said it will no longer issue Apple Pay Later loans, which allow customers to purchase products online and pay in four interest-free installments for up to $1,000. The suspension shows that not every new fintech feature or product Apple launches is successful or fits into the iPhone maker’s overall strategy.

“Starting later this year, customers around the world will be able to get installment loans through credit and debit cards and lenders when they check out with Apple Pay,” an Apple spokesperson told CNBC. “With this new global installment loan With the launch of the loan service, we will no longer offer Apple Pay Later in the U.S.”

Apple said users who want to pay in installments at checkout can get it through other financial intermediaries in more countries around the world, while Apple Pay Later is only available in the U.S.

Apple says its top priority for Apple Pay, the brand name for its contactless online payment software, is to enable secure and private payments. Apple said users with open loans will continue to use the Apple Pay Later feature to manage and pay for their loans.

Before being discontinued, Apple Pay Later allowed users to apply for loans within the iPhone Wallet app, and approved users would see a “Pay Later” option during online checkout.

It’s worth noting that this process involves Apple taking over more of the financial backend than some other products, such as the Apple Card. For the program, Apple does some of the credit checks and loan decisions itself, rather than handling them entirely through a financial partner. Apple’s loans were issued by a wholly owned subsidiary.