Apple Pay Later is gone, but third-party buy now pay later offerings are now easily accessible and manageable in the Wallet app.
The service was shut down in 2024 after a short, rocky run. It never gained wide traction, and Apple quietly ended the service. But Apple hasn't walked away from the "buy now, pay later" market.
Instead, the company is handing customers to third-party providers like Klarna and Affirm, now fully integrated into the Wallet app. The new Wallet feature, called "Pay Later Options," rolled out in September 2025 across iOS 18 and iOS 26.
Users can tap the "+" button in the Wallet app to see every supported installment provider, then set up accounts before checkout. That's a shift from the old method, where the option to pay later was hidden inside Apple Pay's checkout process.
Customers had to switch to "Other Cards & Pay Later Options" while in the middle of a purchase, a clunky design that likely deterred casual use. By making setup a standalone process, Apple has increased visibility and cut down on friction.
Why Apple made the change
The timing isn't accidental, as Apple introduced the update, spotted by Apple enthusiast Aaron, just days before the iPhone 17 launch to link the new flagship with a streamlined financing system. The company knows its phones are expensive, and installment plans reduce the upfront sticker shock.
Apple has increased visibility and cut down on friction
Klarna, Affirm, and Afterpay's billion-dollar businesses stem from convincing consumers to split payments into smaller pieces. Apple embeds these services into Wallet to keep Apple Pay relevant without managing the lending risk.
Apple Pay Later, an experiment with Goldman Sachs handling the back-end, failed due to slow rollouts, limited availability, and regulatory pressure. Apple can now maintain convenience without liability by partnering with third-parties.
BNPL services have faced scrutiny for years due to concerns about misleading marketing, hidden fees, and consumer overextension. Rising inflation and higher retail prices exacerbate these issues.
Spreading payments out doesn't make everyday goods cheaper; it only extends the pain. That can lead to chronic debt, especially when wages don't keep up with prices.
While BNPL services may seem more appealing than payday loans, which trap borrowers in cycles of high interest, they still risk building unmanageable balances if misused.
Apple Wallet's new pay later menu makes Klarna and Affirm easier to use. For consumers, it means one more seamless way to borrow.
