Apple Discontinues Apple Pay Later Service in the U.S.
June 20, 2024, 3:56 am
Location: United States, California, San Francisco
Employees: 1001-5000
Founded date: 2012
Total raised: $4.22B
Apple pulls the plug on its buy now, pay later service, Apple Pay Later, after less than a year in operation. The move comes as Apple gears up to introduce new Apple Pay features this fall, including installment loans through Affirm.
Apple Pay Later, the "buy now, pay later" service from Apple, has met its demise in the U.S. market. The service allowed iPhone users to split purchases of up to $1,000 into four interest-free payments. However, Apple has decided to end this offering, shifting its focus to a new global installment loan service in collaboration with Apple Pay-enabled banks and lenders.
The decision to discontinue Apple Pay Later comes as part of Apple's strategy to provide users with more flexible payment options while ensuring security and privacy. Active Apple Pay Later users can still manage their loans through the Apple Wallet app, despite the service's discontinuation.
Buy now, pay later services have gained popularity in recent years, with over 40% of Americans having used such services, according to a Lending Tree survey. These services are designed to encourage spending by allowing consumers to borrow money for purchases, but users may incur fees if payments are missed, leading to potential debt accumulation.
In 2021, buy now, pay later loans reached $24 billion, a significant increase from $2 billion in 2019, as reported by the CFPB. While this payment option has become widespread in both physical and online stores, many consumers struggle with managing their payments effectively.
Financial regulators have been closely monitoring the buy now, pay later industry since 2021, implementing rules to safeguard consumers. For instance, the CFPB issued a rule in May requiring BNPL lenders to provide consumers with the same protections as traditional credit cards, including the ability to dispute charges and receive refunds for returned purchases made with a BNPL loan.
As Apple bids farewell to Apple Pay Later in the U.S., the company remains committed to enhancing the Apple Pay experience for users worldwide. Stay tuned for the latest updates on Apple's evolving payment solutions.
Apple Pay Later, the "buy now, pay later" service from Apple, has met its demise in the U.S. market. The service allowed iPhone users to split purchases of up to $1,000 into four interest-free payments. However, Apple has decided to end this offering, shifting its focus to a new global installment loan service in collaboration with Apple Pay-enabled banks and lenders.
The decision to discontinue Apple Pay Later comes as part of Apple's strategy to provide users with more flexible payment options while ensuring security and privacy. Active Apple Pay Later users can still manage their loans through the Apple Wallet app, despite the service's discontinuation.
Buy now, pay later services have gained popularity in recent years, with over 40% of Americans having used such services, according to a Lending Tree survey. These services are designed to encourage spending by allowing consumers to borrow money for purchases, but users may incur fees if payments are missed, leading to potential debt accumulation.
In 2021, buy now, pay later loans reached $24 billion, a significant increase from $2 billion in 2019, as reported by the CFPB. While this payment option has become widespread in both physical and online stores, many consumers struggle with managing their payments effectively.
Financial regulators have been closely monitoring the buy now, pay later industry since 2021, implementing rules to safeguard consumers. For instance, the CFPB issued a rule in May requiring BNPL lenders to provide consumers with the same protections as traditional credit cards, including the ability to dispute charges and receive refunds for returned purchases made with a BNPL loan.
As Apple bids farewell to Apple Pay Later in the U.S., the company remains committed to enhancing the Apple Pay experience for users worldwide. Stay tuned for the latest updates on Apple's evolving payment solutions.