Apple’s Collaboration with Banks and Lenders: A New Era for Apple Pay Payment Options

Apple Inc. announced that it would be discontinuing its buy now, pay later service, Apple Pay Later, this week. Instead of offering its own interest-free payment option, the company plans to collaborate with banks and lenders to offer installment loan options on its Apple Pay platform in the near future.

According to a statement provided to 9to5Mac on Monday, users worldwide will soon have access to installment loans through credit and debit cards as well as lenders when checking out with Apple Pay. The company emphasized that their focus remains on providing users with easy, secure, and private payment options with Apple Pay.

Apple Pay Later initially launched in the U.S. in March 2023 and was expanded nationwide in October of the same year. This service allowed customers to split purchases into four interest-free payments, making it a competitor to other buy now, pay later services such as Klarna and Afterpay. However, despite its success, Apple has decided to discontinue the service in order to offer more flexible payment options through partnerships with banks and lenders globally.

While analysts believe that Apple’s decision reflects its commitment to innovation and user experience, some are concerned about the potential loss of revenue from interest-free payments. Nevertheless, experts predict that the company’s focus on user experience will continue to drive future sales of its products.