Apple Discontinues 'Pay Later' Service in Favor of New BNPL Scheme with Affirm

Apple Ends 'Apple Pay Later'

Apple has decided to discontinue its 'Apple Pay Later' service, a buy now, pay later (BNPL) feature that was introduced in the US in the early part of the previous year. The decision was put into effect today, as reported by 9to5Mac. However, users who still have outstanding debts from the BNPL service can continue to manage their payments through the app. This development comes as Apple prepares to launch a new BNPL service in partnership with Affirm, which is slated to be introduced later this year.

No More New Loans from 'Apple Pay Later'

According to the 'Apple Pay Later' website, the service will no longer be offering new loans, but existing loans and purchases will remain unaffected. In a statement provided to 9to5Mac, Apple stated that starting later this year, users worldwide will be able to access installment loans offered through credit and debit cards, as well as lenders when checking out with Apple Pay. The company also confirmed that it will no longer offer 'Apple Pay Later' in the US as it shifts its focus to providing users with easy, secure, and private payment options with Apple Pay.

Apple Pay Later and Affirm's BNPL Feature

'Apple Pay Later' used to provide consumers with BNPL loans ranging from $50 to $1,000, allowing them to split their purchases into four equal payments over six weeks without any fees or interest. Last week, during Apple's Worldwide Developers Conference, it was announced that iPhones and iPads would soon be integrated with Affirm's BNPL feature.

Apple's Partnership with Affirm

9to5Mac provided more details about Apple's partnership with Affirm, stating that Apple is focusing on the new installment loan features that will be added to Apple Pay later this year. These features will be available in several countries around the world. 'Apple Pay Later', on the other hand, was only ever available in the United States. It is clear that Apple will no longer support new BNPL loans, and Affirm will take over this role when the service launches later this year. This move by Apple is seen as a way to mitigate risks in anticipation of a potential consumer downturn next year.

Apple's Faith in American Consumers

One significant implication of this development is that Apple seems to have lost faith in American consumers. This is evident in the expected termination of the Apple/Goldman Sachs credit card partnership, which has been widely regarded as a disaster.

What are your thoughts on this development? Do you think Apple's decision to discontinue 'Apple Pay Later' and partner with Affirm for a new BNPL service is a smart move? Share your thoughts with your friends and sign up for the Daily Briefing, which is delivered every day at 6pm.