Apple kills off its buy now, pay later service service barely a year after launch

abcnews.go.com:

Apple is discontinuing its buy now, pay later service known as Apple Pay Later barely a year after its initial launch in the U.S., and will rely on companies who already dominate the industry like Affirm and Klarna

NEW YORK — Apple is discontinuing its buy now, pay later service known as Apple Pay Later barely a year after its initial launch in the U.S., and will rely on companies who already dominate the industry like Affirm and Klarna.

It's an acknowledgement from a company known for producing hit products that building a financial services business from scratch as Apple has been doing for several years is difficult and highly competitive.

Apple Pay Later launched with fanfare in March 2023 as a way for iPhone customers to split purchases of up to $1,000 into four equal payments with no fees or interest. The service was Apple's answer to the growing popularity of buy now, pay later services globally, and considered a sizeable threat to companies like Klarna, Affirm and others.

But Apple Pay Later was only available where Apple Pay was accepted whereas the other buy now, pay later companies had deeply integrated themselves into millions of merchant websites.

In an acknowledgement of how popular buy now, pay later services had become, Apple said at its developer's conference this month that it would start allowing banks to offer buy now, pay later plans to their customers through Apple Pay and Apple Wallet. Affirm would be integrated directly into Apple Wallet, and Apple customers would be able to open an Affirm account directly.

“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S.,” Apple said late Monday. “Our focus continues to be on providing