Apple has decided to discontinue its buy now, pay later service, Apple Pay Later, less than a year after its launch in the U.S. The move is seen as an acknowledgment of the challenges and intense competition in building a financial services business from the ground up. Apple Pay Later, introduced in March 2023, allowed iPhone users to split purchases up to $1,000 into four equal payments with no fees or interest. Despite its promising start, Apple seems to have found it more practical to rely on established companies like Affirm and Klarna in the buy now, pay later space. This decision underscores the difficulties even a tech giant can face when entering a highly competitive and regulated industry. The discontinuation marks a rare setback for Apple, known for its successful product lines, and suggests a strategic pivot back to its core strengths instead of expanding further into financial services.
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