Proactive Investors - Apple Inc (NASDAQ:AAPL, ETR:APC) has cancelled its "buy now, pay later" (BNPL) service, Apple Pay Later, in the US, less than a year after its launch in the US.
Instead, the tech giant will pivot to a new instalment loan service offered through third-party credit and debit cards.
“With the introduction of this new global instalment loan offering, we will no longer offer Apple Pay Later in the US,” Apple stated.
Existing users with open loans will still have access to the service, but no new loans will be issued.
Apple unveiled its BNPL service back in 2022, aiming to rival existing providers such as Klarna and Affirm by offering the service without partnering with a bank.
BNPL allows users to pay for purchases in four instalments over six weeks without interest and was led through the Apple Financing subsidiary.
In the UK, the new loan offering will be through HSBC and Monzo, while in the US users of Citi, Synchrony, and lenders using software provider Fiserv (NYSE:FI) can access the programme.
Users in Australia and Spain will also gain access through ANZ and CaixaBank, respectively.
Apple said: “Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay.
‘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.”