Apple is killing off its buy now, pay later service just a year after launch as it switches its focus to working with third parties for instalment loans.
Launched in the US last year, Apple Pay Later let online shoppers apply for loans of up to $1000 during the Apple Pay checkout and split the purchase into four equal payments across six weeks, with no fees or interest.
However, earlier this month the company outlined plans for a global instalment loan offering through debit and credit cards as well as BNPL giant Affirm.
Says an Apple statement: "Starting later this year, users across the globe will be able to access instalment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay.
"With the introduction of this new global instalment loan offering, we will no longer offer Apple Pay Later in the US. 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."
For the new instalment service, Apple has partnered with ANZ in Australia, HSBC and Monzo in the UK, CaixaBank in Spain and Citi Synchrony, Affirm and issuers with Fiserv in the US.
Apple Pay Later was seen at launch as sign that the tech giant was moving away from its reliance on partners for its growing FS business. While Apple worked with Goldman Sachs and Mastercard on the service, it set up a wholly-owned subsidiary, Apple Financing, to offer loans directly.
Apple also handled credit checks for the service inhouse. Earlier this year, it acquired UK credit bureau Credit Kudos, which uses open banking technology to deliver finely-tuned credit scores. By taking the process inhouse, Apple could earn interchange fees from transactions and also avoid the need to share customer data with third parties.