Apple has announced the discontinuation of its buy now, pay later service, Apple Pay Later, just a year after its launch in the U.S. This decision comes as Apple shifts its focus to work with established industry players like Affirm and Klarna.
The move reflects the challenges that Apple faced in building a financial services business from scratch, especially in a highly competitive market. Despite its initial fanfare in March 2023, Apple Pay Later struggled to compete with other buy now, pay later services that had already deeply integrated themselves into millions of merchant websites.
To adapt to the popularity of buy now, pay later services, Apple revealed plans at its developer’s conference to allow banks to offer buy now, pay later plans through Apple Pay and Apple Wallet. This includes the integration of Affirm directly into Apple Wallet, providing more flexibility and options for Apple customers.
“While we will no longer offer Apple Pay Later in the U.S., our focus remains on providing users with secure and convenient payment options with Apple Pay,” Apple stated.
Despite discontinuing new Apple Pay Later loans, existing customers will still be able to manage their loans within the Apple Pay platform. The unique aspect of Apple Pay Later was its reliance on creating its own bank to offer loans, with the Apple Card issued by Goldman Sachs.
This shift in strategy marks a significant change for Apple as it navigates the competitive landscape of financial services, aiming to provide users with more diverse and accessible payment options.
