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.
Despacito's dominance in numbers
Released: 2017
Peak chart position: No.1 in more than 47 countries, including the United States, the United Kingdom, Australia and Lebanon
Views: 5.3 billion on YouTube
Sales: With 10 million downloads in the US, Despacito became the first Latin single to receive Diamond sales certification
Streams: 1.3 billion combined audio and video by the end of 2017, making it the biggest digital hit of the year.
Awards: 17, including Record of the Year at last year’s prestigious Latin Grammy Awards, as well as five Billboard Music Awards
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
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Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
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How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
UAE currency: the story behind the money in your pockets
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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Greg Lukianoff and Jonathan Haidt, Penguin Randomhouse
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How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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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
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Company profile
Company name: Nestrom
Started: 2017
Co-founders: Yousef Wadi, Kanaan Manasrah and Shadi Shalabi
Based: Jordan
Sector: Technology
Initial investment: Close to $100,000
Investors: Propeller, 500 Startups, Wamda Capital, Agrimatico, Techstars and some angel investors
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
Results
Stage seven
1. Tadej Pogacar (SLO) UAE Team Emirates, in 3:20:24
2. Adam Yates (GBR) Ineos Grenadiers, at 1s
3. Pello Bilbao (ESP) Bahrain-Victorious, at 5s
General Classification
1. Tadej Pogacar (SLO) UAE Team Emirates, in 25:38:16
2. Adam Yates (GBR) Ineos Grenadiers, at 22s
3. Pello Bilbao (ESP) Bahrain-Victorious, at 48s
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
