Apple to shut down ‘Pay Later’ service, launching ‘installment loans’

Apple has announced to shut down its buy now, pay later (BNPL) service called ‘Apple Pay Later’ in the US.

The service, which let users take out “pay later” loans that can be paid in four payments over six weeks, was launched in the US in October last year.

Now, Apple is launching a new service called “installment loans”.

“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,” the tech giant told 9to5Mac website.

With the introduction of this new global installment loan offering, “we will no longer offer Apple Pay Later in the US,” said the company.

Apple Pay Later was announced alongside iOS 16 release.

“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,” said the iPhone maker.

According to a support document, “Apple Pay Later is no longer offering new loans” but “existing Apple Pay Later loans and purchases are not affected.”

(With inputs from IANS)