Apple’s Pay Later program, a popular choice for customers seeking to buy products on an instalment plan, has significantly expanded the brand’s audience. However, in a recent move, the California-based tech giant has announced the closure of this program. This decision, which allowed customers to make purchases up to $1,000 and pay in four instalments, is set to have a notable impact on Apple’s customer base.
The company made this groundbreaking announcement on Monday, 17 June 2023. It shared the news after announcing that third-party services like those from Affirm Holdings Inc. and Citigroup Inc. would be integrated with iOS 18 software. Users with open loans will be able to manage them with the Wallet App.
Apple’s spokesperson outlined the company’s future plans in a statement and said that “Starting later this year, users worldwide will be able to access instalment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay.” The spokesperson added, “With the introduction of this new global instalment loan offering, we will no longer offer the Pay Later program in the US.”
The world’s second-biggest company, Apple, launched its Pay Later program in the US in 2023. For the first time, Apple issued loans to its customers through a new subsidiary. However, it still relied on Goldman Sachs Group Inc. and MasterCard Inc. to handle the process.
The company said, “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.”