Apple shutting down pay later, its affirm rival, after one year

Apple Inc. is shutting down its Pay Later program, which let customers make purchases on an installment plan, marking a retreat from efforts to offer more financial services in-house.

The company said Monday that it’s no longer offering loans for Apple Pay Later, which allowed users to pay off purchases of as much as $1,000 over four installments. The iPhone maker took the step after announcing that third-party services — such as ones from Affirm Holdings Inc. and Citigroup Inc. — would be integrated into its upcoming iOS 18 software.

“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,” a spokesperson said in a statement. “With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the US.”

Apple launched its Pay Later program in the US last year using an in-house platform. For the first time, Apple itself issued the loans to customers via a new subsidiary. But it still relied on Goldman Sachs Group Inc. and MasterCard Inc. to help handle the process.