In a major pivot within its financial services offerings, Apple Inc. (NASDAQ:AAPL) will reportedly discontinue its "buy now, pay later" (BNPL) service in the U.S., coinciding with the introduction of a new loan program.
This adjustment is set to redefine how Apple integrates financial solutions into its ecosystem.
The new program, set to launch later this year, will allow users to utilize installment loans through various payment methods including credit and debit cards, directly through Apple Pay, reported Reuters.
Apple emphasized that while the BNPL service, known as Apple Pay Later, will be phased out, existing customers with open loans can continue to manage and repay their loans through the Wallet app.
The service, which was initially rolled out to select users in March of the previous year, offered a payment option of splitting purchases into four equal payments over six weeks, without incurring interest or fees.
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"This solution will enable us to bring flexible payments to more users, in more places across the globe in collaboration with Apple Pay-enabled banks and lenders," stated the company, per the report.
The transition to a more versatile lending model highlights Apple's commitment to expanding its financial services footprint worldwide, providing users with more flexible payment options in their financial transactions.
Apple stock has gained more than 17% in the last 12 months. Investors can gain exposure to the stock via Vanguard Information Technology ETF (NYSE:VGT) and IShares U.S. Technology ETF (NYSE:IYW).
Price Action: AAPL shares are trading higher by 0.57% at $217.91 in premarket at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI, and was reviewed and published by Benzinga editors.
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