Apple Inc. has decided to discontinue its Pay Later program, which allowed customers to make purchases on an installment plan directly through Apple. This move represents a shift away from Apple's previous efforts to expand its in-house financial services.

Announced on Monday, Apple stated that it will no longer offer loans for Apple Pay Later, which permitted users to spread payments of up to $1,000 over four installments. Instead, Apple plans to integrate third-party services into its upcoming iOS 18 software. These services, provided by companies like Affirm Holdings Inc. and Citigroup Inc., will offer installment loans through credit and debit cards, as well as other lenders, when checking out with Apple Pay. This new global installment loan offering will replace Apple Pay Later in the US.

Initially launched in the US last year, Apple Pay Later was operated using Apple's own platform, with loans issued directly by Apple through a subsidiary. However, the backend processing involved partnerships with Goldman Sachs Group Inc. and MasterCard Inc.

Users who currently have open loans through Apple Pay Later will still be able to manage them within the Wallet app. Apple emphasized that its focus remains on providing secure and private payment options through Apple Pay, and that the new installment loan services will expand access to flexible payment options globally, in collaboration with Apple Pay-enabled banks and lenders.

This decision to discontinue Apple's direct involvement in offering installment loans signals a strategic shift towards leveraging partnerships for financial services, rather than maintaining an independent loan issuance model.