According to a report, Apple’s (NASDAQ:AAPL) buy-now-pay-later (BNPL) product will shut down later this year. Apple Pay Later was expected to be the first digital loan-type service offered by the tech firm, but it appears that Apple is pulling back on the Fintech lending.
According to 9to5 Mac, Apple is moving to allow other BNPL providers like Affirm and credit card offerings to take over from Apple Pay Later.
The report shared a statement from Apple:
“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.”
It was not immediately clear if the service also meant the pay-over-time opportunity for Apple’s own products would be impacted.
Apple, with its enormous cash on hand, was able to provide the funds to finance purchases. The company’s relationship with Goldman Sachs helped process these loans.
It has been reported that Apple partnership with Goldman Sachs on the Apple Card is coming to an end. Apple has not yet made any announcements regarding who it will partner with going forward to facilitate the Apple Card.
Apple also offers a savings account. At one point, Apple reportedly sought to integrate investing, but this never came to fruition.
Apple will update its Apple Pay services later this year as it rolls out its newest OS.
