Quick guide
Apple has decided to discontinue its internal "buy now, pay later" program and instead offer customers a payment plan through external credit and debit cards. Existing borrowers can still manage payments using the Apple Wallet app. The move marks a gradual move away from Apple's original intention to provide traditional financial services. The previous "Apple Pay Later" plan allowed users to pay for their purchases in installments with no interest or fees. Apple is now partnering with major banks to launch installment options to accommodate changes in the financial services market and consumer preferences. This strategic shift demonstrates Apple's flexibility and adaptability in the financial services sector.
Apple terminates the Pay Later loan program
Apple has decided to end its just-launched internal "buy now, pay later" program in the United States. Instead, the tech giant will now offer payment plans to customers through external credit and debit card lenders. Existing borrowers will still have the option to manage their payments using Apple's Wallet app. The move marks a gradual move away from Apple's original intention to provide traditional financial services.
Apple shifted away from financial services
Apple ended the "Apple Pay Later" program in the U.S., allowing users to split purchases of up to $1,000 into four installments over six weeks without incurring interest or fees. The move represents Apple's foray into financial services, essentially lending directly to customers rather than relying on traditional banks and lenders. The loans were made through a new subsidiary, Apple Financing, taking advantage of the low interest rate environment in the United States at the time.
Apple's installment option partnership
At its recent annual developer event, Apple revealed its partnerships with major banks such as Citibank in the US, HSBC in the UK, and ANZ in Australia to launch installment options. These new payment methods will be available on the upcoming iOS 18 operating system. This strategic shift demonstrates Apple's ability to adapt to changing market conditions and consumer preferences in the financial services sector.