Apple has stopped issuing loans through its buy now, pay later program. Consumers using Apple Pay will instead be able to get loan options from credit and debit cards as well as lenders.
On June 11, Apple announced that later this year users can get loan installment offerings from credit and debit cards and lenders through the Apple Pay mobile payment service, starting in the U.S. with Citi, Synchrony and companies that use Fiserv.
Users could also apply directly for buy now, pay later loans through Affirm 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,” Apple told technology news site 9to5Mac Monday.
Previously, the tech giant offered Apple Pay Later, which let U.S. consumers make purchases with Apple Pay and pay them off in four installments over six weeks, with no interest or fees for late payments.
The loans, $50 to $1,000, were backed directly by Apple. On Monday, Apple updated its support pages to let consumers know that Apple Pay Later is no longer offering new loans.
Existing loans and purchases made with Apple Pay Later aren’t affected. Information about purchases and payments is sent to the Experian credit bureau. Apple said that while the loan program didn’t affect consumer credit scores, it could have an effect on attempts to get additional credit.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.
Please read our comment policy before commenting.