Apple is scrapping the post-payment arrangement for external lenders

Apple is ending its internal buy now, pay later program in the US, a service it launched last year.

The tech giant will now offer customers payment plans through third-party credit and debit card issuers. Existing borrowers can still manage their payments with Apple’s Wallet app.

The decision marks a major shift for Apple, moving away from its previous ambitions to offer traditional financial services. Apple Pay Later allowed US users to split the cost of purchases up to $1,000 (£788) into four installments over six weeks, with no interest or fees. The move had positioned Apple as a direct lender through its Apple Financing subsidiary.

The service was introduced when US interest rates were near zero, making borrowing more attractive. However, when central banks raised interest rates to combat inflation, such financing plans became less attractive to consumers.

At its annual developer event last week, Apple announced partnerships with banks including Citi in the US, HSBC in the UK and ANZ in Australia to offer installment payment options. These new payment plans will be available on Apple’s upcoming iOS 18 operating system, expected to release later this year.