Two years after it was announced at WWDC, Apple's US-only Pay Later feature has been discontinued, the news first reported by 9 to 5 Mac and confirmed by TechCrunch.
Below is the full statement provided to TechCrunch.
Starting later this year, users around the world will be able to use credit and debit cards and installment loans through lenders when checking out with Apple Pay. With the launch of this new global installment loans offering, Apple Pay Later will be discontinued in the US.
We remain committed to providing users with access to easy, secure and private payment options with Apple Pay, and this solution enables us to work with Apple Pay-enabled banks and lenders to offer flexible payments to more users in more locations around the world.
Pay Later has an extremely short lifespan, officially launching in late March 2023. But ultimately, the move isn't a surprise: Apple announced last week at WWDC 2024 that users will be able to take out loans through the third-party app Affirm via Apple Pay.
“Access to credit and debit card installment payments with Apple Pay will be available from issuers including ANZ in Australia, CaixaBank in Spain, HSBC and Monzo in the UK, and Citi, Synchrony and Fiserv in the US,” Apple said last week. “US users will also be able to apply for a loan directly through Affirm when checking out with Apple Pay.”
“This gives our users an additional payment option and offers the features Affirm users love — flexibility, transparency and no late or hidden fees — plus the ease, convenience and security of Apple Pay,” Affirm added of the loans feature, which is expected to roll out later this year.
Meanwhile, US users will now have one less option available through Apple Pay: Pay Later will stop offering new loans as of Monday, but current users of the service will be able to continue making payments and managing their loans through Apple Wallet.
The number of personal loans has been on the rise in recent years, with the number increasing 8% since the pandemic began.