Apple has decided to discontinue its buy now, pay later service and will now be partnering with popular services like Klarna and Affirm to offer similar benefits. The Apple Pay Later service was introduced in March 2023, allowing customers to split purchases into four installments with no interest or fees for items up to $1,000. However, it was only available at vendors that accepted Apple Pay, limiting its reach compared to competitors like Affirm and Klarna, which are accepted at millions of online retailers.
At this year’s Worldwide Developers Conference, Apple announced that select banks will now offer buy now, pay later services through Apple Pay and Apple Wallet. The company stated that with this new global loan installment offering, Apple Pay Later will no longer be available in the U.S. Customers with active Apple Pay Later installments can still manage and pay them within Apple Pay.
Apple’s decision to discontinue Apple Pay Later comes after detailed plans for the service were announced just last month. The service was unique for Apple as it required the creation of its own bank through Goldman Sachs, which determined user rules and approval limits for customers with the Apple Card. This change is part of several significant announcements made at the Worldwide Developers Conference, including the upcoming iOS 18 upgrade later this year with new features like ChatGPT added to Siri and an addition to the SOS calling option.
