Apple shut down a popular feature, dealing a major blow to iPhone users

Apple discontinued a popular feature just a year after launch, which was a major blow to iPhone users.

The tech giant withdrew its buy now, pay later, better known as Apple Pay Later, which allowed users to take out loans for purchases of up to $1,000 and pay off the loan amount in four installments over six weeks.

Although this option is no longer available, consumers with existing loans will not be affected.

Apple’s decision to cancel its buy now, pay later service comes as Apple plans to introduce a similar program in the fall that will allow users to access loans made by eligible credit and debit card companies.

Apple Pay Later launched to much fanfare in March 2023, which was the company’s response to the growing popularity of ‘buy now, pay later’ services worldwide, and was considered a significant threat to companies like Klarna, Affirm and others .

However, Apple’s feature was only available where its digital payment service was accepted, while the other buy now, pay later companies had deeply integrated into millions of merchant websites.

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“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the US,” Apple said late Monday.

‘Our focus remains on providing our users with access to convenient, secure and private payment options with Apple Pay, and this solution will allow us to offer flexible payments to more users, in more places around the world offer, in collaboration with Apple Pay enabled banks and lenders.’

The announcement led to Apple suspending all new Apple Pay Later loans.

“Starting later this year, users around the world will have access to installment loans offered through credit and debit cards, as well as through lenders, when they check out with Apple Pay,” Apple told 9to5Mac.

Rather than working as a lender itself, Apple will focus on helping users secure other lending options that “will allow us to bring flexible payments to more users, in more places around the world, in partnership with banks and lenders that support Apple Pay’. the company added.

This option will be available in the US through Discover credit card and retail lenders Synchrony Financial and Fiserv Solutions, accessible directly through Apple Pay.

The new feature also allows users to apply for a loan with Affirm – a buy now, pay later lender that offers short-term loans for both online and in-store purchases.

Users can add the loan option during checkout, which allows them to apply for the loan through a credit card and loan service or directly through Affirm.

The new loan feature still omits hidden fees, offers zero percent interest and allows users to split payments into four installments due over six weeks.

According to a June LendingTree survey, about 13 percent of 889 respondents said they had used Apple’s “buy now, pay later” feature, while one in three Americans said they had considered applying for an installment loan .

Users in Australia, Spain and the United Kingdom – who previously didn’t have access to Apple’s buy now, pay later feature – will also have access to installment options starting this fall.

Apple introduced early access to the feature in March 2023, providing the loans themselves, but it didn’t officially launch until October.

The partnership with its former rival Affirm could help the company expand its loan program and offer longer-term repayment options, JPMorgan analyst Reginald Smith said.

“Affirm does not expect any meaningful impact on FY25 revenue. . . but it’s hard to imagine that adding a platform of this size won’t move the needle,” Smith wrote last week, according to the Financial Times.

The shift to partnering with Affirm and other credit and debit card companies to replace the buy now, pay later option was introduced last week at the Worldwide Developers Conference in California.

DailyMail.com has contacted Apple for comment.