ZDNet Exclusive: Apple's Phase-Out of Apple Pay Later & Anticipation for a Replacement Service

The End of Apple’s Pay Later Program & Its Future Replacement as Revealed

Maria Diaz/ZDNET

If you used Apple Pay Later to pay for purchases in installments, bid that service a fond farewell. In a support page update , Apple announced that “Apple Pay is no longer offering new loans for purchases with Apple Pay.”

Apple launched Apple Pay Later in October 2023 to let its users fund purchases via monthly payments. Through the service, you could request a loan amount between $50 and $1,000 to pay for your purchase. With the loan amount split into four payments over six weeks, you’d make the first payment at checkout, with the three remaining payments charged to your debit card every two weeks. The major benefit was that your Apple Pay Later loan carried no interest charges.

Also: How to use Apple Pay in stores and online

Although Apple is retiring the service, you can pay off your loans as you have until now:

If you currently have an active loan, continue to make each payment according to the due date. If your loan is set to autopay, Apple will automatically charge the debit card you used for all future payments.
If you bought an item that hasn’t shipped yet, your first payment will be debited after the retailer processes your order. You’ll then make the remaining three payments every two weeks.
If you’ve returned an item or are waiting for a refund, the retailer will notify Apple Pay Later, which will then apply the refund to any payments you owe.

On its support page, Apple didn’t reveal why it’s retiring Apple Pay Later. In a statement sent to 9to5Mac , however, the company touted an alternative option set to roll out later in 2024, likely in line with the release of iOS 18 and iPadOS 18 in the fall.

“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,” Apple said in its statement.

“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the US,” the company explained. “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.”

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At its WWDC 2024 conference last week, Apple revealed more details about its upcoming installment option.

“Apple Pay introduces even more flexibility and choice for users when they check out online and in-app,” the company said in a news release . “Users can view and redeem rewards, and access installment loan offerings from eligible credit or debit cards, when making a purchase online or in-app with iPhone and iPad. These features will be available for any Apple Pay-enabled bank or issuer to integrate in supported markets.”

Also: iOS 18 will let you use Apple Pay on any browser on any PC

Apple plans to roll out the installment option to a few countries, including Australia with ANZ (The Australia and New Zealand Banking Group), Spain with CaixaBank, and the UK with HSBC and Monzo. In the US, people will be able to apply for loans through Citi and Synchrony, as well as with banks and credit unions that use Fiserv. US consumers who check out with Apple Pay will also be able to request loans directly through “buy now, pay later” service Affirm .

From Apple’s description, the new installment plans offer a couple of benefits over Apple Pay Later. First, you’ll be able to use either a credit or debit card to fund your purchases (Apple Pay Later was limited to only debit cards). Second, the installment option will be accessible globally, while Apple Pay Later was available only in the US.