Apple Scraps Pay Later Loan Scheme in Shift to Third-Party Lenders

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Apple is ending its in-house “buy now, pay later” scheme in the US, a service it launched just last year.

The tech giant will now offer customers payment plans through third-party credit and debit card lenders. Existing borrowers can still manage their payments using Apple’s Wallet app.

The decision marks a significant shift for Apple, retreating from its earlier ambitions to provide traditional financial services. Apple Pay Later allowed US users to split the cost of purchases up to $1,000 (£788) into four instalments over six weeks without interest or fees. This move had positioned Apple as a direct lender through its subsidiary, Apple Financing.

The service was introduced when US interest rates were near zero, making borrowing more attractive. However, as central banks raised rates to combat inflation, such financing plans became less appealing to consumers.

During its annual developer event last week, Apple announced partnerships with banks, including Citi in the US, HSBC in the UK, and ANZ in Australia, to offer instalment payment options. These new payment plans will be available on Apple’s upcoming iOS 18 operating system, expected to be released later this year.