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After launching a buy now, pay later option for customers last year, the tech giant Apple said this week it is discontinuing the service in the U.S.
The tech company told some news outlets Monday that it’s replacing Apple Pay Later with other payment options.
Instead, users of the company’s digital wallet worldwide will have access to installment loans through credit and debit cards, and other lenders, starting later this year when they check out with Apple Pay, the statement said.
“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.,” Apple said in the statement to the outlets. “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.”
Beginning late last year, wallet users tapping the Apple Pay Later option were able to take out short-term loans of between $50 and $1,000 and repay those loans in installments. The service was available to users when they paid at merchants that accept Apple Pay. The company initially talked about the offering in 2022, and rolled out an early version in the U.S. last year.
The pivot by Apple comes just weeks after the Consumer Financial Protection Bureau said in a policy statement last month that it will treat BNPL providers as credit card lenders. The BNPL industry, which also includes competitors such as Klarna, Affirm and Afterpay, had been waiting on the federal agency’s guidance in recent years.
The announcement by Apple also follows the company saying last week that it will begin partnering with other BNPL companies.
It’s not clear if Apple Pay Later will still be available in other countries. An Apple spokesperson did not immediately respond to a message seeking comment.
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