Apple Pay Later is shut down; replacement is coming later this year

In March 2023, a preview of Apple Pay Later was unveiled allowing users to borrow from $50 up to $1,000 and repay the debt in four equal amounts over six weeks with no fees or interest charged. By last October, Apple Pay Later was available to all iPhone users. Loans were tracked and payments were made from the Wallet app. Wait, why did we use the past tense when writing about Apple Pay Later? That’s because the feature has been discontinued by Apple starting today. Any loans still open can be paid off via the Wallet app.

Apple is expected to add new features to Apple Pay later this year including one that will show users installment loans that they can apply for from buy now, pay later firm Affirm, and from credit and debit cards.

“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. With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S. 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 statement made to 9to5Mac

While Apple Pay Later was available only to U.S. iPhone users, the new installment loans feature available later this year will be offered in various countries worldwide. During WWDC last week, Apple posted that later this year “The ability to access installments from credit and debit cards with Apple Pay will roll out starting in Australia with ANZ; in Spain with CaixaBank; in the U.K. with HSBC and Monzo; and in the U.S. with Citi, Synchrony, and issuers with Fiserv. Users in the U.S. will also be able to apply for loans directly through Affirm when they check out with Apple Pay.”

Also looking ahead to later this year, Apple wrote, “Apple Pay introduces even more flexibility and choice for users when they check out online and in-app. Users can view and redeem rewards, and access installment loan offerings from eligible credit or debit cards, when purchasing online or in-app with iPhone and iPad. These features will be available for any Apple Pay-enabled bank or issuer to integrate in supported markets.”

From the preview in March 2023, Apple Pay Later lasted 447 days. But from the full launch of the service last October, the feature lasted only eight months. My gut feeling is that Apple would rather offer the new installment loans feature coming later in 2024 possibly because it will be available in more countries rather than just the U.S.