Apple to nix iPhone feature with huge effect on users’ spending habits

Apple has announced it is pulling Apple Pay Later a little over a year after it was first launched.

The tech giant introduced its new buy now, pay later service in March 2023 – following the success of companies such as Klarna, Affirm, and Afterpay.

It allowed iPhone users in the U.S. the chance to split purchases of up to $1,000 into four equal payments with no fees or interest added. 

Unlike its competitors, Apple Pay Later could only be used where Apple Pay was accepted. 

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Apple is scrapping Apple Pay Later

This week, Apple announced that the service will no longer run and that it will instead start allowing banks to offer buy now, pay later plans to their customers through Apple Pay and Apple Wallet.

On Monday (June 17) the company said: “Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders when checking out with Apple Pay.

“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.

“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.”

This comes hot on the heels of Apple introducing its biggest update ever, including huge AI changes via iOS 18.

Those with existing loans should continue to pay as normal

A statement on its website explains: “Apple Pay Later is no longer offering new loans. Existing Apple Pay Later loans and purchases are not affected.

“You should continue to make loan payments by the due date. If you have autopay enabled, the debit card that you selected to use with Apple Pay Later will be charged for future loan payments.”

Although this means no new credit agreements will be made, those who have loans already will still need to pay them off and will be able to manage them through Apple Pay.

It has been a busy few weeks for Apple, which recently shared details of its new iOS18.

The updated operating system will see some big changes when it comes to customization and AI. 

Meanwhile, Apple Watch owners were delighted when the company announced the upcoming watchOS 11 would allow them to ‘pause’ Activity Rings without impacting their streak.