The end of Apple’s Pay Later scheme – What does it mean for customers?

Apple has recently decided to discontinue its buy now, pay later scheme in the US, which allowed users to split the cost of their purchases into four instalments over six weeks without any interest or fees. This move signals a shift for the technology giant, as it plans to partner with third-party credit and debit card lenders to provide payment plans to its customers. Existing borrowers will still be able to manage their payments through Apple’s Wallet app. While the Pay Later scheme was a convenient and attractive option for customers during a period of low-interest rates, the decision to end it reflects changing market conditions. With central banks raising rates to combat inflation, the appeal of interest-free instalment plans has diminished. Moving forward, Apple will collaborate with major banks such as Citi, HSBC, and ANZ to offer alternative payment options. For customers who have been using Apple’s Pay Later scheme, this shift may prompt them to explore new financing options and consider the terms and conditions of third-party lenders more closely. By partnering with established financial institutions, Apple aims to provide a more robust and diverse range of payment solutions to its users, while maintaining its focus on innovation and customer convenience. As the landscape of financial services continues to evolve, customers should stay informed about the changes in payment options and make decisions that align with their financial goals and preferences.