Apple announced the discontinuation of Apple Pay Later, its buy now, pay later (BNPL) service, on June 17, 2024. The decision comes after just one year of operation for the service, which was launched in the United States in 2023.
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Apple Pay Later allowed users to split purchases into four payments over six weeks, with no interest or fees. The service quickly gained popularity among consumers seeking payment flexibility.
However, Apple did not disclose the exact reasons for ending the service. Speculation suggests that challenges in profitability, due to the low-margin nature of BNPL services, and the highly competitive market may have contributed to the decision.
The discontinuation of Apple Pay Later has disappointed some users who found the service convenient and secure for managing their finances. Others, however, have expressed concerns about BNPL services potentially encouraging overspending and debt.
Analysts from Wedbush Securities view Apple’s decision to end Apple Pay Later as a wise move, as the service did not align with the company’s long-term strategy of focusing on more profitable financial services.
Investors have mixed reactions, with some seeing the discontinuation as a positive sign of Apple focusing on core businesses and more profitable services. Others express concern about the potential impact on Apple’s image as an innovation leader.
While Apple Pay Later is no longer available for new users, existing users who were approved before June 17, 2024, can continue to use the service until their payments are completed. This means they can continue to make scheduled payments for purchases made before the discontinuation date. However, they will not be able to initiate any new payment plans through Apple Pay Later.
Apple’s decision reflects its commitment to focusing on other financial services with higher growth potential, such as:
- Apple Card: Apple’s credit card offering benefits like daily cash back and account management through the Wallet app.
- Apple Cash: A peer-to-peer payment service allowing users to send and receive money through iMessage.
- Apple Savings Account: A high-yield savings account launched in the United States earlier this year.
Apple also plans to launch new credit services in the future, likely focusing on personal and business loans.
The discontinuation of Apple Pay Later highlights the challenges even tech giants like Apple face in the rapidly growing and competitive fintech market. However, Apple remains committed to developing new financial services to meet consumer needs and diversify its business.
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