Apple said it will discontinue its existing Pay Later service, which was first announced two years ago and launched in the US nearly a year ago, as the company plans to expand a revamped offering to additional markets and collaborate with more FinTech players globally.
The service, offered in partnership with Mastercard and Goldman Sachs, will be replaced by an instalment loan programme through Apple Pay. It is expected to roll out later this year when Apple will launch the public version of its latest operating system for iPhones, iOS 18.
The National looks at the coming buy now, pay later service and explores why Apple decided to discontinue its existing service.
What is Apple's Pay Later service?
In May last year, Apple introduced its Pay Later programme in the US that allowed users to split their purchases into four payments over six weeks with no interest or fees.
First announced at Apple’s developers’ conference in June 2022, the service allowed users to apply for loans ranging from $50 to $1,000. The loan amount can be used for online and in-app purchases made on iPhone and iPad with merchants who accept Apple Pay.
Users were asked to link a debit card from Apple Wallet as their loan repayment method. Credit cards were not accepted and purchases using Pay Later were authenticated using facial ID, touch ID or passcode.
Apple’s latest instalment loan offering
Apple said it is stopping Pay Later service in the US as it is introducing a new loan service that can be repaid in instalments, globally.
Beginning later this year, users worldwide will be able to obtain instalments offered through credit and debit cards, as well as various lenders, when using Apple Pay, the Cupertino-based company said on Monday.
“Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay, and 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,” Apple said.
Partnership with Affirm
Apple has joined hands with San Francisco-based FinTech company Affirm to let its device users avail BNPL services. It is expected to happen later this year, probably September or October, when Apple will launch public versions of its latest operating systems.
Users in the US will be able to apply for loans directly through Affirm when they check out with Apple Pay, Apple said.
“This will enable those users checking out online or in-app with Apple Pay on iPhone and iPad to be able to apply to pay over time with Affirm,” Affirm said in a regulatory filing.
Founded in 2012, Nasdaq-listed Affirm offers BNPL service for online and in-store shopping. It had over 18 million users as of last year.
Apple has also teamed up with various financial institutions to ensure the smooth roll-out of its services globally.
“The ability to access instalments from credit and debit cards with Apple Pay will roll out starting in Australia with ANZ; in Spain with CaixaBank; in the UK with HSBC and Monzo; and in the US with Citi, Synchrony, and issuers with Fiserv,” Apple said.
What happens to existing users?
Users with active Pay Later loans will continue to manage and make payments through the Apple Wallet app, as they currently do, Apple said.
“Apple Pay Later is no longer offering new loans for purchases with Apple Pay. Your existing loans and purchases are not affected. You can continue to manage your loan and view loan details in Wallet,” it said.
How did Apple run its Pay Later programme?
The company used a new wholly owned subsidiary, Apple Financing, to handle lending and credit check services. It used to run a soft credit check to ensure that borrowers can pay back the loans.
It was the first time the company handled financial services such as loans, risk management and credit assessments on its own.
This service was introduced when interest rates in the US were lower, which made borrowing highly appealing. However, as central banks raised rates to combat inflation, such plans lost their attractiveness, industry analysts said.
How big is the market?
The BNPL business model, which allows consumers to make online purchases and spread out interest-free repayments, became more popular during the coronavirus pandemic.
Global BNPL transaction values are projected to grow to $576 billion by 2026, up from $120 billion in 2021, according to data analytics company GlobalData.
The world’s biggest BNPL companies include Affirm, Sweden’s Klarna and Australia’s Afterpay.
Established BNPL players in the UAE include Mubadala-backed Tabby, as well as Postpay, Cashew, Spotii and Tamara.
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Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
The specs: 2018 Ford Mustang GT
Price, base / as tested: Dh204,750 / Dh241,500
Engine: 5.0-litre V8
Gearbox: 10-speed automatic
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Day 2, Dubai Test: At a glance
Moment of the day Pakistan’s effort in the field had hints of shambles about it. The wheels were officially off when Wahab Riaz lost his run up and aborted the delivery four times in a row. He re-measured his run, jogged in for two practice goes. Then, when he was finally ready to go, he bailed out again. It was a total cringefest.
Stat of the day – 139.5 Yasir Shah has bowled 139.5 overs in three innings so far in this Test series. Judged by his returns, the workload has not withered him. He has 14 wickets so far, and became history’s first spinner to take five-wickets in an innings in five consecutive Tests. Not bad for someone whose fitness was in question before the series.
The verdict Stranger things have happened, but it is going to take something extraordinary for Pakistan to keep their undefeated record in Test series in the UAE in tact from this position. At least Shan Masood and Sami Aslam have made a positive start to the salvage effort.
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Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
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Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
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Mohammed Abukhater, vice president at FireEye in the Middle East, said:
- Keep device software up-to-date. Most come with basic operating system, so users should ensure that they always have the latest version
- Besides a strong password, use two-step authentication. There should be a second log-in step like adding a code sent to your mobile number
- Usually smart devices come with many unnecessary features. Users should lock those features that are not required or used frequently
- Always create a different guest network for visitors
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
UAE currency: the story behind the money in your pockets
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