Apple is shutting down its buy now, pay later service just a year after launching it, shifting its focus to working with third parties for installment loans.
Launched in the US last year, Apple Pay Later allows online shoppers to apply for credits of up to $1,000 during Apple Pay checkout and split the purchase into four equal payments over six weeks, with no fees or interest.
However, earlier this month the company unveiled plans for a global installment loan offering across debit and credit cards, as well as BNPL giant Affirm.
A statement from Apple said: “Starting later this year, users around the world will be able to access installment loans offered through credit and debit cards and lenders when paying with Apple Pay.”
“With the launch of this new global installment loan offering, we will no longer offer Apple Pay Later in the US. Our focus remains on providing our users with access to simple, secure and private payment options with Apple Pay and this solution will allow us to offer more flexible payments to more users in more places in collaboration with Apple Pay-enabled banks and lenders to the whole world.”
For the new installment service, Apple has worked with ANZ in Australia, HSBC and Monzo in the UK, CaixaBank in Spain and Citi Synchrony, Affirm and issuers with Fiserv in the US.
Apple Pay Later was seen at launch as a sign that the tech giant is no longer dependent on partners for its growing FS business. While Apple partnered with Goldman Sachs and Mastercard on this service, the company created a wholly owned subsidiary, Apple Financing, to offer loans directly.
Apple also conducted the service’s credit check internally. Earlier this year, the company acquired British credit bureau Credit Kudos, which uses open banking technology to deliver fine-grained credit scores. By taking the process in-house, Apple could earn interchange fees from transactions and also avoid the need to share customer data with third parties.