What was expected to be a good idea and strategic move to break into the competitive financial services industry, Apple is now scaling back.
Apple has made the decision to discontinue its buy now, pay later service, Apple Pay Later, just a year after its launch in the U.S.
Apple Pay Later was introduced with much excitement in March 2023 as a convenient way for iPhone users to split their purchases up to $1,000 into four equal payments, free of fees and interest. While Apple aimed to challenge the dominance of buy now, pay later giants like Klarna and Affirm, the service ultimately fell short due to its limited availability only where Apple Pay was accepted, unlike its competitors deeply integrated into various merchant websites.
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What’s The Next Move:
Recognizing the popularity of buy now, pay later services, Apple still wants in and Jason revealed its new strategy at a recent developer’s conference, allowing banks to provide buy now, pay later options through Apple Pay and Apple Wallet. Affirm will now be directly integrated into Apple Wallet, offering Apple customers the ability to open an Affirm account seamlessly.
In a statement issued by Apple, the company expressed its commitment to providing users with secure and flexible payment options through collaborations with Apple Pay-enabled banks and lenders on a global scale.
“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.,” Apple said late Monday. “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.”
Apple Pay Later stood out for requiring Apple to establish its own bank to offer loans, with the Apple Card being issued by Goldman Sachs, determining approvals and spending limits for customers. While Apple has halted new Apple Pay Later loans, existing users will still have access to managing their loans within Apple Pay.
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