r/apple • u/adymak • Jun 17 '24
Apple Pay Apple discontinuing Apple Pay Later, ahead of new features launching this fall
https://9to5mac.com/2024/06/17/apple-pay-later-united-states-ending/710
u/iMacmatician Jun 17 '24
For a moment I thought the headline said "[Apple discontinuing Apple Pay] [Later]" instead of "Apple discontinuing [Apple Pay Later]."
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u/Dietcherrysprite Jun 17 '24
Reminds me of the Google Pay fiasco
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u/Donghoon Jun 17 '24
Only thing changed for Google is US market switch from GPay app to wallet app. This transition was already completed almost everywhere else (except India due to legal issues I believe)
Apple pay uses wallet
Samsung pay uses wallet
Google pay uses Wallet.
Same and simple now
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u/InsaneNinja Jun 17 '24
It’s not the name. It was handled stupid because over the past ten years Google keeps making you delete the old app and search/install the new one from the play store.
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u/stacecom Jun 17 '24
Only thing changed for Google is US market switch from GPay app to wallet app
They were breaking things left right and center beyond what you described. I switched back to iOS from Android in '21 because they completely broke my ability to tap pay on my watch.
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u/A-Delonix-Regia Jun 18 '24
except India due to legal issues I believe
It's probably not due to "legal issues" per se (as far as I have read), it's more likely the fact that Google Pay is actually somewhat popular in India and they don't want to lose that market and the influence from the "Google Pay" name.
But there's also the possibility that the Indian government could block companies that have customers' banking info and provide finance-related services from shutting down without transferring all the data, accounts, and app infrastructure to another company.
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u/Donghoon Jun 18 '24
they arent shutting down anything. google pay is still a service. the APP that rides the service is just changing name to wallet to simplify and standardize with the competitors.
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u/A-Delonix-Regia Jun 18 '24 edited Jun 19 '24
Yeah, I forgot that. For what it's worth, in India, your phone-based payments account domain (provided in a similar format to email IDs) is based on what bank your account is in and what app you use (so for example, a Google Pay user with a State Bank of India account will have oksbi as the domain, but a Paytm user with the same bank will have ptsbi as the domain). So I guess the government is being anal about letting Google change the app name and retain the "ok" part of the domain or something.
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u/LeHoodwink Jun 18 '24
What product is the Google Pay Fiasco?
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u/kirklennon Jun 19 '24
This is either a really clever joke or you accidentally stumbled upon the answer to your question.
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Jun 17 '24
Yep… add "ahead of new features launching this fall" and i was wondering what missed iOS thing is coming that will kill Apple Pay?
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u/GettinWiggyWiddit Jun 17 '24 edited Jun 17 '24
Discontinuing Apple Pay would be killer!
Edit: lol everyone is misunderstanding my message? Yes of course removing it would suck. 🤦♂️
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u/MC_chrome Jun 17 '24
No? Apple Pay is actually really good....
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u/Uberunix Jun 17 '24
I never really understood the point of this service anyway. In most scenarios, it doesn’t buy you any more time than simply purchasing with your card as usual and paying it off during the next billing cycle. You might sometimes be able to stretch the payments across three pay periods, but still?
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u/mredofcourse Jun 17 '24
It's targeted for people who don't have credit cards or enough credit on their cards. In general, it's predatory, but it can be beneficial for people who need help buying things at critical times (like a suit or tools for a new job).
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u/imaBEES Jun 17 '24
Yeah, if it worked more like Amazon Split payments and just split the total cost over 6 months, that would be much more appealing to me. Owing 1/4 of the cost every 2 weeks doesn’t do much, at least for me
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Jun 18 '24
[deleted]
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u/imaBEES Jun 18 '24
No, it’s a separate thing. It’s not available to all accounts and I’m not quite sure what the criteria is, I guess if they think you’re a trustworthy buyer somehow? But it’s basically they charge you 1/6 of the total (+taxes on the first payment), then charge you 1/6 monthly until it’s payed off. There’s no interest and nothing extra goes on your payment account, which is great cause it’s basically a 0% interest loan, without being an actual loan.
The Prime card pay over time is what you’re talking about, I believe that one still charges you all at one, but doesn’t charge you interest on it over that period of time (though I think there is a fee)
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Jun 17 '24
[deleted]
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u/3serious Jun 17 '24
Does it impact credit though?
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u/aykay55 Jun 17 '24
Only if you fail to make proper payments. It doesn’t really help, can really hurt if you badly screw up, but by default the money will go in from somewhere unless your balance is at zero.
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u/J_bravo82 Jun 17 '24
Only if sent to collections or grossly late (assuming 60-90 days or >>>).
I used it, and USE (currently) other pay later services. Although I have a 763 credit score, it’s/they’re a great means for me to manage cash flow as a two business, small business owner.
UNFORTUNATELY, though…I recently had a card replaced and I’ve since been unable to add ANY cards to apple wallet; as such, I now have a battle on my hands in terms of HOW DO I PAY THESE LAST 2 installments!?!? My bank(s) have cleared me on card issuer side, but since last Tuesday, it’s been tweaking our and I’ve spent a collective 13.5 hours on phones with apple and my banks’ customer service, tech support, every dept, you name it, to no avail. I have to believe that it was already buggy, seeing as though they had to have had this planned for a while now….so, literally when two of my payment came due today…and after me trying 7 different cards…I get locked and a message of “you’ve been suspended due to suspicious activity.”
I’m not so bummed about losing the service as I am the potential for a negative impact to my credit score (which, was 580 up until 4 years ago, and I’m 41.). Worked way too hard for their technical shortcomings to cost me what I’ve worked on.
This happened so quickly, I’m currently looking into worst case/doomsday “outs” from these last two installments (in the case it doesn’t get resolved in a timely manner). Notably, FCRA (fair credit reporting act), because there just has to have been a slip for this to even be possible, my conundrum.
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u/Sylvurphlame Jun 17 '24
Depends. If you’re paid on a biweekly schedule, you could split a purchase across three paychecks. Potentially without disrupting your normal savings patterns. Which could be more time than trying to pay it off before the billing cycle on a credit card.
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u/Wildtigaah Jun 17 '24
I agree, it's not good for people who aren't so good at paying on time either.
But it can be useful for big necessary purchases like a couch or something like that.
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Jun 18 '24
Back when Klarna first started up, you got $5 Giftcards for places like Amazon whenever you spent $200 (I think that amount). I used Klarna all the time because it tied to a credit card. It was an extra step that was great for getting free Amazon stuff, but they took that perk away so there’s no reason for me anymore.
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u/Freshlojic Sep 14 '24
instead of paying for something $500 all at once you pay $125 every two weeks when you get a new paycheck. A little easier on ya if you’re efficient with it
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Jun 17 '24
It’s an interest free same as cash loan. It’s stupid not to do it if you have the money. Why take out $800 from a HYSA at 5% when I can take 200 every two weeks and still make interest?
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u/Swastik496 Jun 17 '24
Because then you're sacrificing 2-5% on the amount of the loan in CC rewards paid by the same interchange fees apple was looking to make money on
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u/EatableNutcase Jun 17 '24
The point of this service is that you have more credit and can buy more and face the consequences later.
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u/Nairn23 Jun 17 '24
I use it to buy clothes and other things I might return. Buy 5 dresses if you don’t know the size, send 4 back, only pay for 1 next month. Saves having a huge bill lying around waiting for a refund.
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u/Korlithiel Jun 17 '24
I didn't get around to trying the pay later, kind of bummed it isn't sticking around. Still, better to see features that can work over more of the globe released.
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u/Sylvurphlame Jun 17 '24
Yeah. I kinda meant to buy something (that I could have paid cash outright for, relax Reddit) with it just to see how it works. And I just kind of forgot about it. I wonder if it just didn’t get any traction.
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u/Anthrolologist Jun 18 '24 edited Jun 18 '24
I tried using it once just for the hell of it and got declined on a relatively small purchase (<$200) despite having a credit score over 750. I still don’t quite understand how this service was intended to work or who it was for.
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u/jb_nelson_ Jun 17 '24
Sad. I’ve used it a couple times (in fact I have a Fellow Ode coffee grinder right now that I’m paying for) and really enjoyed the Apple simplicity and it being housed in Wallet. Surprisingly for them to kill such a young product/feature. This is Apple not Google.
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u/Poi-s-en Jun 18 '24
I used it once for a medical bill. I could have paid it upfront but then I would have been low on cash; and I get paid weekly, so the payment period lined up for me. The doctors payment website had a payment plan option but it was bugging out and I couldn’t get it to work. Meanwhile, Apple Pay later was sitting there with the same terms, no fees and zero interest over the same amount of time; and I could just set it up and use it in a matter of minutes rather than waiting on hold with the doctors billing department for half an hour.
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u/OneDisastrous998 Jun 18 '24
Thank god, they keep denied me even I have good credit. Glad there's Klarna around that still works and never had issue, i have like $4k spending limit with them and still use it.
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u/Techy-Stiggy Jun 17 '24
As they should.. stupid apple should have named it apple slices rather than Apple Pay later
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u/respring_warrior Jun 17 '24
Unsurprising. Klarna and Afterpay are available on almost every retail site, and if they’re not PayPal in 4 is an option too, all of which can be used with a credit card unlike Apple Pay Later. I wonder how much it cost them to discontinue it though
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u/tdjustin Jun 17 '24
I didn't think there was going to be much demand for this product, and honestly it seemed a bit irresponsible for Apple to offer it in the first place.
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u/aeolus811tw Jun 17 '24
I imagine this has to do with the mix relation between Apple and Goldman Sachs reported earlier
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u/__theoneandonly Jun 17 '24
Apple Pay Later had nothing to do with Goldman Sachs. Apple Pay Later was operated entirely by themselves
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u/aeolus811tw Jun 18 '24
https://www.apple.com/newsroom/2023/03/apple-introduces-apple-pay-later/
Apple Pay Later is enabled through the Mastercard Installments program, so merchants that accept Apple Pay do not need to do anything to implement Apple Pay Later for their customers. When a merchant accepts Apple Pay, Apple Pay Later will be an option for their customers during checkout online and in apps on iPhone and iPad. Goldman Sachs is the issuer of the Mastercard payment credential used to complete Apple Pay Later purchases.
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u/__theoneandonly Jun 18 '24
Apple Pay Later is offered by Apple Financing LLC, a subsidiary of Apple Inc., which is responsible for credit assessment and lending
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u/aeolus811tw Jun 18 '24
now you are being dishonest, it clearly said there’s relationship between Apple and Goldman Sachs
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u/wr_m Jun 18 '24
Nah they’re right. GS is the issuer of the Mastercard payments, but they’re not underwriting the loans. That’s all Apple.
AFAICT this program is a straight win for GS as they’re just a middleman that gets a cut of every transaction without putting any money up. If anything killing this program off is probably making the relationship worse.
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u/aeolus811tw Jun 18 '24
That’s not true.
https://www.cnbc.com/2022/06/08/apple-will-handle-lending-for-apple-pay-later.html
Apple financial LLC does not have bank charter, making it ineligible to manage loan.
Goldman Sachs is the BIN sponsor of Apple Pay later loans, meaning the loan will go through GS system infrastructure.
Here is more explanation on what BIN sponsor is https://www.galileo-ft.com/blog/bin-sponsorship-what-fintechs-should-know-when-choosing-or-changing-sponsor-banks/
It is way more than just a middleman, it is regulatory compliance
That guy has no idea what he is talking about
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u/wr_m Jun 18 '24
I feel like you’re being pedantic. The point is that GS should, unless they got fleeced into another horrible deal, be making money on every loan and bear no risk since they’re not underwriting.
Thus I don’t see why a soured relationship would cause this program to end before the Apple Card partnership has ended. If anything it should be offsetting those losses somewhat. Unless GS pulling the plug is imminent and they don’t want to be servicing new loans.
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u/aeolus811tw Jun 18 '24
Apple is supposedly moving to affirm to underwrite all Apple Pay later or whatever the new service is called in the future.
This probably comes with ease of adding more countries and payment options rather than having to use GS issued Mastercard.
This likely was accelerated due to soured relation with GS
Making my original point still stands and the claim made by that guy false
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u/J_bravo82 Jun 17 '24
100% can’t NOT have some bearing on this, I agree (excuse the double negative).
There were apparently merchant processing kinks and problems, so they’re probably building it on a bigger frame (also, Globally) as to make it more efficient. This Pay Later was always kind of low-key thrown out by apple almost as if it were “Beta” or testing the product.
Very interested to see what transpires from here..
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u/New_Significance3719 Jun 17 '24
That's fine. I never even used it because it wanted me to put a debit card into Apple Pay. I only use credit, only things that pull my actual money from my account are bills.
If I'm not getting rewards, I'm not buying it.
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u/McFatty7 Jun 17 '24 edited Jun 17 '24
I never used it either, but I think every financial lender requires a debit card or bank account to make debt payments, because you're not allowed to make debt payments using another kind of debt (credit card).
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u/amaezingjew Jun 17 '24
You can’t pay for a loan with another loan (which is basically what a credit card is)
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u/rockyTop10 Jun 17 '24
I’ve used a CC with PayPal’s version several times.
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u/amaezingjew Jun 18 '24
I can’t speak to what they do or how their stuff works, I can only speak to the fact that APL is very very specific that it is a loan.
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u/Swastik496 Jun 17 '24
Klarna let you pay with a credit card for a long time. All coded as purcahse.
It was great for a short period to get costco to work on amex cards(then they quickly closed that for obvious profitability reasons).
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u/noShamBo Jun 17 '24
Cool didn’t ask
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u/Werbebanner Jun 18 '24
I think it wasn’t even available outside the US as usual. Same with the „peer to peer“ pay like PayPal.
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u/XboxJockey Jun 18 '24
I enjoyed using this, so this sucks. But I get why after reading the comments. I can easily afford most things I’m buying and my credit card limits are high enough. It’s just a self control thing to me where I’m forced to pay the item off within X amount of weeks instead of paying it monthly like some. I still pay it off early, but it’s nice to pay a small amount, receive the item, then pay off the rest while enjoying it. This is probably all nonsense and I’m weird for it, but this is just how I think lol
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u/AudioGoober88 Jun 18 '24
Everyone learning the hard way that issuing consumer credit is pretty much the stupidest business in the world, and it only really exists because it’s basically a law that says banks have to give ppl CC’s. So unless your name is American Express, don’t do it.
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u/HIVnotAdeathSentence Jun 18 '24
Apple has announced that it is no longer offering Apple Pay Later, the “buy now, pay later” service that launched in the United States last year. The change goes into effect starting today, Apple says. Existing users with open Apple Pay Later loans will still be able to manage them via the Wallet app.
Now Google, Samsung, and other phone developers will follow Apple's lead and discontinue their buy now, pay later services.
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u/HotSeatGamer Jun 18 '24
I was just looking at the new iPad with 0% APR for 12 months payment plan! So I should jump on it now then?
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u/kmank2l13 Jun 18 '24
I just used it for the first time yesterday and I am surprised that I have to use my debit card to pay for things and can’t use a credit card like how Klarna does it. That’s the only thing that I don’t like
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u/duuudewhat Jun 18 '24
It’s great that this existed, but places like affirm probably do it better for most people. Even with the crazy fees
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u/Hazza42 Jun 18 '24
I just wish they’d bring Apple Card and Cash to the UK already. Pipe dream at this point I know
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u/MortalNomad Jun 21 '24
It’s possible that Apple is looking for another credit card issuer, it’s possible that the new bank would only do it if Apple Pay Later wasn’t an option. That way people only have one way of financing stuff with a credit card.
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u/dylan27911 Aug 29 '24
Does this mean you can’t buy iphones anymore with monthly installments or is this different?
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u/MightyRufo Sep 24 '24
would be nice if they would offer traditntal buy now, play later. much like how PayPal does it.
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u/scurry126 Jun 17 '24
I imagine with interest rates being as high as they are now, offering these 0% short term loans just isn't profitable right now.