Apple stops offering buy now, pay later loans in U.S.

Apple
said
on
Monday
that
it
has
stopped
issuing
loans
through
Apple
Pay
Later,
its
buy-now-pay-later
program
that
launched
last
year.

The
move
comes
after
Apple

said
it
would
start
allowing
installment
loans
later
this
year
in
its
Apple
Pay
checkout
process
through
third-party
companies,
such
as


Affirm,
and
credit
and
debit
cards
from
issuers,
such
as
Citigroup.

Apple
said
it
would
no
longer
issue
Apple
Pay
Later
loans,
which
enabled
customers
to
buy
products
online
and
pay
in
four
interest-free
installments,
at
prices
up
to
$1,000.
The
discontinuation
is
a
sign
that
not
every

new
fintech
feature
or
product
that
Apple
launches
becomes
a
success
or
fits
in
with
the
iPhone
maker’s
overall
strategy.

“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,”
an
Apple
spokesperson
told
CNBC.
“With
the
introduction
of
this
new
global
installment
loan
offering,
we
will
no
longer
offer
Apple
Pay
Later
in
the
U.S.”

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

Apple
said
its
priority
with
Apple
Pay,
the
brand
name
for
its
contactless
and
online
payment
software,
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
it
was
discontinued,
Apple
Pay
Later
enabled
users
to
apply
for
loans
within
the
iPhone
Wallet
app,
and
approved
users
would
see
a
“Pay
Later”
option
when
checking
out
online.

The
process
notably
involved
Apple
taking
over
more
of
the
financial
backend
than
some
of
its
other
products,
like
Apple
Card.
For
the
program,
Apple
made
some
of
its
own
credit
credit
checks
and
loan
decisions,
instead
of
having
those
handled
entirely
through
financial
partners.
Apple’s
loans
were

issued
by
a
wholly
owned
subsidiary.