Apple discontinues its ‘Pay Later’ service ahead of expanded loan offerings

Back in March 2023, Apple announced a new feature for Apple Pay that lets shoppers split purchases between $50 and $1,000 into four payments spread out over six weeks with no interest or fees. A little over a year later, however, Apple has announced that it is discontinuing the service.

According to 9to5Mac, customers looking to use a pay later service can look forward to “installment loans” offered at checkout when using Apple Pay. It sounds like there will be a great array of options as opposed to Apple Pay Later, which offers a rigid payment schedule:

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. 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.

Apple via 9to5Mac

Apple announced Apple Pay Later at WWDC 2022 and it launched the service to “randomly selected users” in March 2023 in the U.S. The new Apple Pay features will likely launch with iOS 18 along with Chrome support and redesigned event tickets with extra features in Apple Wallet.