Apple discontinuing Apple Pay Later, ahead of new features launching this fall

Apple has announced that it is no longer offering Apple Pay Later, the “buy now, pay later” service that launched in the United States last year. The change goes into effect starting today, Apple says. Existing users with open Apple Pay Later loans will still be able to manage them via the Wallet app.

In its place, Apple is focusing on new features coming globally to Apple Pay later this year, including the ability to access installment loan offerings from eligible credit or debit cards, as well as Affirm.

Apple announced the news in a statement to 9to5Mac:

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.

Apple tells me that users who have an active loan through Apple Pay Later will still be able to manage and pay their loans using the Apple Wallet app, just as they do today.

After being announced at WWDC 2022, Apple Pay Later launched in the United States in March 2023. The service offered “buy now, pay later” loans directly via the Apple Pay check out experience. The platform allowed users to apply for a loan ranging from $50 to $1,000 and split that purchase into four equal payments across six weeks, with no fees or interest.

Apple emphasizes that its focus is on the new installment loan features coming to Apple Pay later this year. These features will be available in multiple countries around the world. Apple Pay Later, meanwhile, was only ever available in the United States.

Here’s a recap of the new Apple Pay features Apple announced last week:

Apple Pay introduces even more flexibility and choice for users when they check out online and in-app. Users can view and redeem rewards, and access installment loan offerings from eligible credit or debit cards, when making a purchase online or in-app with iPhone and iPad. These features will be available for any Apple Pay-enabled bank or issuer to integrate in supported markets.

The ability to access installments from credit and debit cards with Apple Pay will roll out starting in Australia with ANZ; in Spain with CaixaBank; in the U.K. with HSBC and Monzo; and in the U.S. with Citi, Synchrony, and issuers with Fiserv. Users in the U.S. will also be able to apply for loans directly through Affirm when they check out with Apple Pay.

Loans offered through Apple Pay Later were backed by Apple itself, while Goldman Sachs was the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.

Read more details about what’s new in the Apple Wallet app in our coverage from WWDC last week.

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