Apple abruptly abandons “buy now, pay later” service amid regulatory scrutiny

Enlarge (credit: sesame | DigitalVision Vectors)

Apple has abruptly discontinued its "buy now, pay later" (BNPL) service, Apple Pay Later, which turned Apple into a money lender when it launched last March in the US and became widely available in October.

The service previously allowed users to split the cost of purchases of up to $1,000 into four installments that were repaid over six weeks without worrying about extra fees or paying interest. For Apple, it was likely a move to increase total Apple Pay users as the company sought to offer more core financial services through its devices.

Now, it appears that Apple has found a different route to offer short-term loans at checkout in Apple Pay. An Apple spokesperson told 9to5Mac that the decision to end Apple Pay Later came ahead of the company's plan to start offering new types of installment loans globally.