Apple has ceased offering loans through its Apple Pay Later program in the United States, the company announced on Monday. Launched just last year, Apple Pay Later allowed customers to make purchases online and pay in four interest-free installments for products priced up to $1,000.
The decision to discontinue the service marks a strategic shift for Apple amidst plans to integrate installment loans into its Apple Pay checkout process later this year. This integration will be facilitated through partnerships with third-party providers like Affirm, as well as through major credit and debit card issuers such as Citigroup.
Unlike Apple Pay Later, which was limited to the U.S., the upcoming installment loan options are expected to be available in more countries worldwide. Apple emphasized that its primary focus with Apple Pay remains on enabling secure and private payment experiences.
Users who currently have open loans through Apple Pay Later will still be able to manage and pay off their loans using the existing features provided by the service.
Before its discontinuation, Apple Pay Later allowed users to apply for loans directly within the iPhone Wallet app. Approved users could then select a “Pay Later” option during online checkout, with Apple handling aspects of credit checks and loan decisions internally, unlike its Apple Card product which involves external financial partners.
Apple clarified that loans issued through Apple Pay Later were managed by a wholly owned subsidiary of the company. This move underscores Apple’s commitment to exploring and refining financial services offerings within its ecosystem, adapting to both customer needs and strategic goals.