Apple discontinues buy now, pay later financing in the United States.

Apple has ceased providing loans through its Apple Pay Later program in the United States. This decision follows Apple’s announcement of upcoming installment loan options available through third-party providers later this year, expanding beyond the Apple Pay Later initiative introduced last year.

The Apple Pay Later service allowed customers to split online purchases into four interest-free installments, with individual transaction limits of up to $1,000. However, Apple’s choice to discontinue this offering highlights that not all fintech innovations from the tech giant achieve sustained success or align with its overarching business strategy.

Apple revealed that users globally will soon access installment loans via credit and debit cards, in addition to partnerships with lenders, during the Apple Pay checkout process. Consequently, Apple Pay Later will no longer operate in the U.S., with users directed to alternate financial partners for installment payment services in more regions worldwide.

Apple emphasized that its primary focus with Apple Pay remains ensuring secure and private payment transactions. Existing Apple Pay Later users with outstanding loans will retain access to their loan management features as the service winds down.

Prior to its discontinuation, Apple Pay Later facilitated loan applications within the iPhone Wallet app, granting eligible users a “Pay Later” choice during online transactions. Notably, this program involved Apple assuming greater responsibility for financial operations compared to products such as Apple Card, with the company making credit assessments and loan determinations internally rather than solely through external financial institutions.

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