Apple shuts down Apple Pay Later just months after launch

Company is replacing service with ‘instalment loans’ from credit and debit cards and lenders

Apple is shutting down its buy now pay later service, called Apple Pay Later, just months after introducing it.

The service was launched to select users in March 2023 and enabled them to take “pay later” loans.

It was rolled out widely in the US in October allowing users to pay for purchases in four instalments within six weeks.

The tech giant is now replacing it with another service that enables users to apply for “instalment loans” from credit cards, debit cards and lenders when they check out to purchase with Apple Pay.

“Starting later this year, users across the globe will be able to access instalment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay,” Apple said in a statement, according to 9to5Mac. “The ability to access instalments from credit and debit cards with Apple Pay will roll out starting in Australia with ANZ, in Spain with CaixaBank, in the UK with HSBC and Monzo; and in the US with Citi, Synchrony, and issuers with Fiserv.”

The company said the new service “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”.

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

The decision does not affect existing loans and purchases, Apple said in a support page.