Apple closes Pay Later, but with the EU, peace returns to payments

Apple's buy now pay later was short-lived. The service, called Apple Pay Later, had been active for a few months in the US (it never came to Europe). And it was discontinued in the past few hours, with the Cupertino company explaining that it wanted to focus on a new instalment loan service offered through third-party credit and debit cards..

"Starting later this year, users around the world will be able to access installment loans offered through credit and debit cards as well as lenders when they check out with Apple Pay," explained an Apple spokesperson. "With the introduction of this new global instalment loan offering, we will no longer offer Apple Pay Later in the United States."

Apple said that users who want instalment plans will be able to access them via other financial intermediaries in more countries worldwide than Apple Pay Later, which is only available in the US. The Cupertino company, after all, has one priority: Apple Pay, the branding of its contactless and online payment software. And that is where it will concentrate its efforts. Users with open loans will continue to have access to Apple Pay Later functionality to manage and pay their loans, Cupertino said.

But how did Apple Pay Later work, before it was discontinued? In fact, it was the more classic buy now pay later, a system that was very much in vogue, especially during the pandemic. A payment model that allows users to apply for loans via the iPhone's Wallet app, with a 'Pay Later' option when paying online. All paid for by Apple, with Apple loans issued by a wholly-owned subsidiary of the Cupertino giant.

Now Apple is changing tack on lending, and announcing a more substantial programme coming in the next few months that will have third-party intermediaries.