Apple shuts down Pay Later feature

As initially noted by 9 to 5 Mac and later confirmed by TechCrunch, Apple no longer provides its Pay Later feature, which launched in the US in October 2023 for eligible residents. At that time, the company intended to provide a service that enables users to divide purchases into four payments over six weeks, with no interest or fees. Before officially being released, Apple randomly selected users and provided them with access to a version of the feature via Wallet and through their Apple ID email.

Currently, Apple stated that the modification has been implemented as of the announcement and existing users with open Apple Pay Later loans are set to be able to manage them through the Wallet app. Additionally, the company mentioned that it intends to replace the Pay Later capability with new features coming worldwide to Apple Pay later in 2024, including delivering access to instalment loan offerings from eligible credit or debit cards and Affirm. The news follows Affirm’s collaboration with Apple Pay, with the two companies planning to allow the latter’s users and clients to leverage BNPL loans from Affirm.

Loans delivered via Apple Pay Later were supported by the company itself and Goldman Sachs was the issuer of the Mastercard payment credential utilised to complete Apple Pay Later purchases.

According to a statement provided by Apple, the company aims to allow users globally to access instalment loans provided via credit and debit cards and lenders when checking out with Apple Pay. Considering its plans to deliver this international offering, Apple decided that it is no longer necessary to provide Apple Pay Later in the US. Moreover, the company mentions its commitment to continuing to offer its users access to secure and private payment options with Apple Pay. Also, the new solution is set to allow Apple to bring flexible payments to more customers in partnership with Apple Pay-enabled banks and lenders.

Furthermore, the current announcement comes shortly after Apple disclosed at WWDC 2024 that US customers are set to be able to leverage loans via the third-party app Affirm through Apple Pay. Affirm pointed out that this move delivers more payment options to users, as well as the capabilities of Apple Pay merged with its features. In addition, Apple plans to introduce instalments from credit and debit cards with Apple Pay starting in Australia with ANZ, in Spain with CaixaBanx, in the UK with HSBC and Monzo, and in the US with Citi, Synchrony, and issuers with Fiserv.

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