Apple shuts down Pay Later service in US less than a year after launch. All you need to know

Apple has confirmed that it is shutting down the Apple Pay Later service, which allowed users to take out loans and split purchases into four instalments without paying interest or fees. Apple also confirmed that users with existing Pay Later loans will be able to track them within the Wallet app, but no new loans will be issued.

Notably, Apple had first announced the launch of this new service with the iOS 16 update in 2022, and the company began rolling out the feature via 'early access' from March last year. However, the feature was not officially launched and made part of the Wallet app until October 2023.

Launched in partnership with Mastercard and Goldman Sachs, the Pay Later service was the first instance of Apple offering short-term loans on its own. However, as the service comes to an end, Apple will switch to a built-in instalment loan feature, which will be added with the iOS 18 update.

During the recently concluded WWDC 2024 event, Apple had said that the instalment loan feature would first be rolled out to users in the UK, with support for HSBC and Monzo banks.

In a statement to 9to5Mac, Apple confirmed the news that it is shutting down the Pay Later service. 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.” the Cupertino based tech giant added