Apple Stops Pay Later Scheme; Unveils Installment Loan Service

(RTTNews) - Apple Inc. has announced that it is no longer offering Pay Later, its 'buy now, pay later' financing with 0% interest, while it is introducing new global installment loan offering. The company users, who have an active loan through Apple Pay Later, can continue to pay their loans using the Apple Wallet app.

Apple Pay Later was available only in the U.S., while the new installment loan features will be available in multiple countries across the world.

Apple Pay Later was first introduced at annual Worldwide Developers Conference or WWDC 2022, while its preview was launched in the U.S. in March 2023. In October last year, the platform, which allowed users to apply for a loan ranging from $50 to $1,000, was available generally. The service also allowed customers to split the purchase amount into four equal payments across six weeks, with no fees or interest.

Apple reportedly stated that 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, its mobile payment service.

"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," the firm said.

During last week's WWDC, the company had announced that it would be partnering with various banks globally for Apple Pay.

According to the company, the ability to redeem rewards for a purchase with Apple Pay will be available beginning in the U.S. with Discover and Synchrony, and across Apple Pay issuers with Fiserv.

Further, 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.

With Apple Pay, users will get more flexibility and choices when they check out online and in-app. They 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 company also noted then that Apple Pay can be used on any third-party web browser and computer by simply scanning a code on their iPhone to securely complete the payment.