Apple Leaves Credit Biz Due to Risk Yet Still Treats Users Like Tricks

[TheChronicle.cc] – Initially launched in October 2023 for U.S. users, Apple Pay Later allowed customers to make purchases between $75 and $1,000 in four payments over six weeks, interest-free and without affecting credit scores. Apple has announced its decision to replace this service with installment loan options available through eligible credit and debit cards, as well as Affirm. Users with existing Apple Pay Later loans can still manage and pay them via the Apple Wallet app.

Apple's move away from its first in-house banking service comes without explanation, marking a shift despite earlier efforts to expand into financial services. The company, known for partnerships like Goldman Sachs for its savings accounts and credit cards, operated Apple Pay Later through its subsidiary Apple Financing LLC.

This decision underscores Apple's ongoing commitment to providing secure and private payment solutions through Apple Pay, now enhancing accessibility with global installment loan offerings in collaboration with banks and lenders.

For further details, Apple referenced their statement to 9to5Mac:

"Starting later this year, users globally will access installment loans offered through credit and debit cards, alongside lenders with Apple Pay. As we introduce this new global installment loan offering, we will discontinue Apple Pay Later in the U.S. Our focus remains on providing users easy, secure, and private payment options with Apple Pay, expanding flexibility to more users worldwide."

Apple's withdrawal from Apple Pay Later follows recent developments in its banking ventures, suggesting ongoing challenges despite initial enthusiasm.