Apple Inc. recently announced the discontinuation of its buy now, pay later service, Apple Pay Later. The company stated that installment loan options from other providers will soon be available on its Apple Pay platform worldwide. In response to this news, BofA Securities senior IT hardware analyst Wamsi Mohan recommends buying Apple on The Claman Countdown.
According to a statement made to 9to5Mac on Monday, users will soon have access to installment loans through credit and debit cards, as well as lenders, when using Apple Pay. This global installment loan offering will replace Apple Pay Later in the U.S., emphasizing Apple’s commitment to providing secure and private payment options.
Apple customers with existing Apple Pay Later loans are still able to manage and pay off their loans through the Apple Wallet app. The company has not yet responded to inquiries regarding their decision to discontinue the service. Analysts predict that this move by Apple is an attempt to collaborate with banks and lenders to bring flexible payment options to more users globally, positioning itself as a leader in the industry alongside competitors like Klarna and Block-owned Afterpay.
The service was launched as a competitor to other buy now, pay later providers and was seen as a way for customers to split purchases into interest-free payments over time rather than paying for them all upfront. This strategy has been successful for many companies in recent years as consumers seek out more affordable ways to make purchases without taking on debt or spending large sums of money upfront.
However, with this new global installment loan offering, it seems that Apple is shifting its focus towards working with traditional financial institutions rather than competing directly with these companies in the buy now, pay later space. It remains unclear how successful this approach will be for the company moving forward but it certainly signals that they are open-minded about new business models and willingness to adapt their strategies accordingly.