Apple Ends Own Buy Now, Pay Later Program

What You Need To Know

Apple (NASDAQ: AAPL) is discontinuing its own buy now, pay later (BNPL) program in the US after just a year and shifting to third-party lenders for payment plans. Existing users can still manage payments through Apple's Wallet app. The move signifies a step back from offering direct financial services. Customers under the previous plan could split purchases of up to $1,000 into four interest-free installments over six weeks.

The change reflects the current trend of partnering with established banks for payment options, such as with Citi, HSBC, and ANZ. The transition to third-party lenders coincides with the release of iOS 18, expected later this year.

Why This Is Important for Retail Investors

1. Market Impact: Retail investors should track Apple's financial decisions as they can influence the company's revenue streams and overall market performance.

2. Financial Sector Trends: This move reflects broader shifts in the financial sector towards buy now, pay later services, providing insights into emerging consumer preferences and industry directions.

3. Risk Assessment: Understanding Apple's switch to third-party lenders helps investors evaluate the company's risk management strategies and adaptability in a changing financial landscape.

4. Competitive Positioning: By observing Apple's partnerships with major banks for payment options, retail investors can gauge the company's competitive stance against other tech and financial players in the market.

5. Consumer Behavior Insights: This change gives retail investors a glimpse into consumer behavior patterns regarding payment preferences, aiding in forecasting demand for Apple products and services.

Read What Others Are Saying

Reuters: Apple turns to third parties for 'buy now, pay later' after sunsetting product

FT: Apple to settle 'tap-and-go' payments probe with EU