Apple stops offering ‘Buy now, pay later’ loans in the US

Apple said it would no longer provide Apple Pay Later loans, which allowed customers to buy products online and pay in four interest-free installments, at prices up to $1,000. The shutdown is a sign that not every new fintech feature or product Apple launches becomes a success or fits with the iPhone maker’s overall strategy.

“Starting later this year, users around the world will be able to access installment loans offered by credit and debit cards, as well as lenders, when paying with Apple Pay,” said a door -Apple spokesperson to CNBC. “With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the United States”

Apple said users who wanted installment plans at checkout would have access to them through other financial intermediaries in more countries around the world than with Apple Pay Later, which was only available in the United States. United.

Apple said its priority with Apple Pay, its contactless and online payment software brand, was to enable secure and private payments. Users with open loans will continue to have access to Apple Pay Later features to manage and pay their loans, Apple said.

Before its discontinuation, Apple Pay Later allowed users to apply for loans in the iPhone Wallet app, and approved users would see a “Pay Later” option when paying online.

The process notably involved Apple taking on more of the financial back end than some of its other products, like Apple Card. For the program, Apple made some of its own credit checks and lending decisions, instead of outsourcing them entirely to financial partners. Apple’s loans were issued by a wholly owned subsidiary.