Apple ‘Pay Later’ Discontinued As New BNPL Scheme Shifts Consumer Debt Risk To Affirm

Apple has ended ‘Apple Pay Later,’ the buy now, pay later (BNPL) service launched in the US early last year. The change went into effect today, according to 9to5Mac. Users with outstanding BNPL debt can still manage payments in the app. This comes ahead of Apple’s new BNPL service with Affirm, which is expected to launch later this year. 

“Apple Pay Later is no longer offering new loans. Existing Apple Pay Later loans and purchases are not affected,” Apple Pay Later’s website read. 

In a statement to 9to5Mac, Apple 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 US 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.

Apple Pay Later provided consumers with BNPL loans that ranged from $50 to $1,000 and split that purchase into four equal payments across six weeks, with no fees or interest.

Last week, at Apple’s Worldwide Developers Conference, the company announced that iPhones and iPads will soon be integrated with Affirm’s BNPL feature. 

9to5Mac shed more color on Apple’s partnership with Affirm, indicating:

Apple emphasizes that its focus is on the new installment loan features coming to Apple Pay later this year. These features will be available in multiple countries around the world. Apple Pay Later, meanwhile, was only ever available in the United States.

What’s clear is that Apple will no longer back new BNPL loans. Instead, Affirm will when the service launches later this year. In other words, Apple is mitigating risks ahead of what could be a consumer downturn next year.

The big takeaway is that Apple has little faith in American consumers. Look at the disastrous Apple/Goldman Sachs credit card partnership, which is expected to end in the near term.