Apple to discontinue BNPL service in the US, introduces new loan program

Apple Inc stated on Monday that it will end its "buy now, pay later" (BNPL) service, Apple Pay Later, in the United States as it prepares to introduce a new lending program. Users will be able to receive instalment loans using credit and debit cards, as well as various lenders, while paying with Apple Pay beginning later this year, according to the business.

"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," said Apple.

The move is part of Apple's overall goal to improve its financial services offering. In comparison to the current BNPL service, the new programis expected to provide users with more flexibility and options.

Despite the closure of Apple Pay Later, current users with open loans can continue manage and pay them using the Wallet app. Apple Pay Later, which was introduced to a restricted group of users in March of last year, allowed customers to split purchases into four instalments over six weeks without incurring any interest or fees.

The decision to discontinue the BNPL service in favour of the new loan program represents a fundamental shift in Apple's approach to consumer financing. Apple Pay's integration with credit and debit cards, as well as partnerships with established lenders, promises to deliver a more comprehensive and accessible financial service.

(With inputs from Agencies)