Apple Inc. announced on Monday its decision to discontinue its “buy now, pay later” (BNPL) service in the United States while unveiling a new installment loan program set to launch later this year.
The tech giant stated that users will soon have access to installment loans through credit and debit cards, as well as participating lenders, when checking out with Apple Pay. This move is aimed at providing more flexible payment options to users globally in collaboration with Apple Pay-enabled financial institutions and lenders.
Existing users of Apple’s BNPL service, known as Apple Pay Later, will still have the capability to manage and pay off their open loans through the Wallet app, according to the company’s statement.
Apple Pay Later was initially rolled out to selected users in March last year, offering the ability to split purchases into four payments over six weeks with no interest or fees.
The transition away from BNPL towards a broader installment loan offering reflects Apple’s strategy to expand financial services integrated with its ecosystem, leveraging Apple Pay’s widespread adoption and partnerships with banks and lenders.
This strategic shift by Apple comes amidst a growing trend in the fintech industry towards installment payments and alternative financing options, aiming to cater to consumer preferences for flexibility in spending and managing finances.
As Apple prepares to launch its new loan program, details about specific terms, participating lenders, and global availability will be disclosed closer to the rollout date later this year.
