Apple Discontinues its BNPL Service in the US
Apple has shut down its buy now, pay later (BNPL) service known as Apple Pay Later, less than a year after launching it. The service was discontinued in the U.S. as of Monday, ahead of Apple's launch of new Apple Pay features set to hit iPhones this fall. The changes will let Apple Pay users make purchases as well as access installment loans through Affirm. Apple Pay users with active Apple Pay Later loans can still manage them through the Apple Wallet app.
Total Retail's Take: The popularity of BNPL lending among consumers has led to increased adoption of the service among retailers and brands. According to eMarketer, total BNPL spending in the US will grow 12.3 percent year-over-year to $80.77 billion in 2024. However, BNPL lending is drawing increased scrutiny from federal regulators amid concerns over consumer protection and financial risks. BNPL providers must now offer some of the same protections afforded to credit card users, including the right to dispute charges and demand refunds for returned purchases, the Consumer Financial Protection Bureau announced last month. Apple is choosing to discontinue its Pay Later service at an opportune time as more strict regulations are introduced.
