Apple turns to third parties for ‘buy now, pay later’ after shutting down Apple Pay Later
Apple Pay Later allowed users to split the cost of an Apple Pay purchase into four equal payments spread over six weeks.
Although Apple is shutting down its Apple Pay Later service launched last year, the company is sticking with the product, with a successor to the buy now, pay later offering launching later this year via third-parties like Affirm.
In a statement on Monday, Apple said its new 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 did not comment further about why it was ending its independent BNPL offering.
Existing users of the BNPL service, Apple Pay Later will still be able to manage and pay open loans via the Wallet app, the company said.
Apple announced last week that Apple Pay users, opens new tab would be able to access new installment loan offerings this fall, including the ability to apply for BNPL loans directly through Affirm when they check out with Apple Pay. Customers will also be able to access installments from credit and debit cards, the tech giant said.
“To me, this sounds a lot like what we see happening with debit cards,” said Sean Gelles, director of payments intelligence at J.D. Power. “Regardless of which debit card a consumer has funding their purchases, as long as they use Apple Pay, it’s Apple that owns the experience.”
Gelles added that if Apple’s new portfolio of BNPL products are delivered via Apple Pay there would be “minimal risk for Apple as they will thereby retain the relationship with the customer.”
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MacDailyNews Take: It also shuts down a regulatory avenue.
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