Apple discontinues the Pay Later financing service

Apple, which just introduced its in-house purchase now, pay later programme last year, is abandoning it in the US.

Apple states that it will now provide payment plans to consumers via independent credit and debit card lenders.

Current borrowers will still be able to use Apple Wallet to manage their payments.

With this move, Apple has abandoned its ambitions to provide conventional financial services.

Users using Apple Pay Later in the US may divide the cost of items up to $1,000 (£788) into four equal payments spread out over a period of six weeks, all without incurring fees or interest.

With this concept, Apple entered the financial services market by essentially lending money to consumers rather than relying on banks and other traditional lenders.

The loans were issued by the business through Apple Financing, a new division.

It happened when US interest rates were almost zero, which greatly increased the appeal of both borrowings.

However, these schemes lost attractiveness when central banks raised interest rates to combat growing costs.

Apple said this week at its annual developer conference that it will be collaborating with banks to provide choices for installment payments. These banks include Citi in the US, HSBC in the UK, and ANZ in Australia.

Its future iOS 18 operating system, which is anticipated to be launched later this year, will have additional payment alternatives.

(Sources: bbc.co.uk)