Apple is scrapping its Pay Later service

18 Jun 2024

Image: © Sundry Photography/

Apple is ending its Pay Later service as it focuses on a new loan offering instead, while scrutiny continues to plague the BNPL sector.

Apple has revealed that it is scrapping its ‘buy now, pay later’ (BNPL) service, despite only launching it in the US last year.

This service, known as Apple Pay Later, was announced by the tech giant at its Worldwide Developers Conference (WWDC) in 2022 as a way to provide a more flexible payment option for Apple Pay users. It allowed users to split purchases into four payments, which were spread out over six weeks “with no interest and no fees”.

But the tech giant has revealed plans to end this service and focus on a new loan offering instead. This news was first reported by 9to5Mac, which received a statement from Apple on its decision.

“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,” the company said in the statement. “With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the US.”

Apple announced these upcoming loan features at WWDC 2024. The tech giant has partnered with third-party app Affirm and will let US users apply for loans directly with Affirm when they check out with Apple Pay.

Apple also plans to let its Apple Pay users redeem rewards and “access installment loan offerings from eligible credit or debit cards” when making a purchase online or in-app with an iPhone and iPad.

Tougher times for BNPL?

Apple made its move into the BNPL space at a time when other companies such as Revolut were eyeing up the sector. In 2021, a wave of big players entered the sector – Mastercard joined the space with its Installments service, PayPal acquired Japanese BNPL player Paidy and UK digital bank Monzo jumped on the trend with its Monzo Flex feature.

But the BNPL sector has also attracted scrutiny over the ease with which shoppers can amass debt through online shopping. The UK published a draft regulation last year to regulate this sector, while the US Consumer Financial Protection Bureau recently said BNPL should be treated the same as credit card transactions.

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Leigh Mc Gowran is a journalist with Silicon Republic