Apple discontinues short-lived BNPL offering
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Apple discontinued its Apple Pay Later installment program on Monday, mere months after launch.
Why it matters: The move marks a quick retreat from the BNPL market as Apple seeks to offer installment loans through partners instead.
Driving the news: As first reported by 9to5Mac, Apple will no longer offer loans through Apple Pay Later starting Tuesday.
- Any users with open loans can still manage and pay their loans through the Wallet app.
Flashback: Apple officially announced it was entering the buy now, pay later sector two years ago, but its actual rollout was significantly delayed.
- The company didn't begin offering Apple Pay Later to selected users until last March and didn't make the service generally available until October.
The big picture: With the launch of iOS 18, however, the iPhone maker will let users apply for BNPL loans from Affirm and access installment options from other banking partners.
What they're saying: "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 wrote in an emailed statement to Axios.
- "With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S."
Between the lines: The BNPL program's demise comes as Apple is unwinding its relationship with Goldman Sachs, its partner for the Apple Card, Apple Savings account, and Apple Pay Later.
- Doing away with Apple Pay Later could ease the way for Apple to find another financial services partner.
What we're watching: With installment loans now on offer through the next version of iOS, Klarna and other BNPL providers may seek to partner with Apple.
