Apple discontinues its Apple Pay Later service just a year after its launch, opting to rely on established companies like Affirm and Klarna in the competitive buy now, pay later (BNPL) space. Despite initial fanfare and a promising start, Apple Pay Later struggled due to limited acceptance compared to its competitors, which are deeply integrated into millions of merchant websites. Apple has decided to pivot by allowing banks to offer BNPL plans through Apple Pay and Apple Wallet, with Affirm being directly integrated into Apple Wallet. This strategic shift aims to provide more flexible payment options to users globally, leveraging Apple Pay-enabled banks and lenders. Existing Apple Pay Later loans will still be managed through Apple Pay, but no new loans will be issued. The decision underscores the challenges of building a financial services business from scratch, even for a tech giant like Apple.
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