Aswat Asharq Al-Awsat :

Aswat Asharq Al-Awsat : Apple Kills off Its Buy Now, Pay Later Service Barely a Year after Launch

An Apple logo adorns the facade of the downtown Brooklyn Apple store on March 14, 2020, in New York. (AP)
An Apple logo adorns the facade of the downtown Brooklyn Apple store on March 14, 2020, in New York. (AP)
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Apple Kills off Its Buy Now, Pay Later Service Barely a Year after Launch

An Apple logo adorns the facade of the downtown Brooklyn Apple store on March 14, 2020, in New York. (AP)
An Apple logo adorns the facade of the downtown Brooklyn Apple store on March 14, 2020, in New York. (AP)

Apple is discontinuing its buy now, pay later service known as Apple Pay Later barely a year after its initial launch in the US, and will rely on companies who already dominate the industry like Affirm and Klarna.

It's an acknowledgement from a company known for producing hit products that building a financial services business from scratch as Apple has been doing for several years is difficult and highly competitive.

Apple Pay Later launched with fanfare in March 2023 as a way for iPhone customers to split purchases of up to $1,000 into four equal payments with no fees or interest. The service was Apple's answer to the growing popularity of buy now, pay later services globally, and considered a sizeable threat to companies like Klarna, Affirm and others.

But Apple Pay Later was only available where Apple Pay was accepted whereas the other buy now, pay later companies had deeply integrated themselves into millions of merchant websites.

In an acknowledgement of how popular buy now, pay later services had become, Apple said at its developer's conference this month that it would start allowing banks to offer buy now, pay later plans to their customers through Apple Pay and Apple Wallet. Affirm would be integrated directly into Apple Wallet, and Apple customers would be able to open an Affirm account directly.

“With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the US,” Apple said late 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 executives as recently as this month had indicated that the company still had plans for Apple Pay Later despite announcing plans to integrate Affirm directly into Apple Wallet.

Apple Pay Later was unique because Apple needed to create its own bank to offer the loans. The Apple Card is issued by Goldman Sachs, which means Goldman ultimately decides who gets approved and what spending limits are for each customer.

Apple has discontinued any new Apple Pay Later loans, but customers who have existing Apple Pay Later loans will be able to manage them inside Apple Pay.



Aswat Asharq Al-Awsat : Russian Cybersecurity Firm Kaspersky to Exit US

3D printed models of people working on computers and padlock are seen in front of a displayed Kaspersky logo in this picture illustration taken, February 1, 2022. REUTERS/Dado Ruvic/File Photo Purchase Licensing Rights
3D printed models of people working on computers and padlock are seen in front of a displayed Kaspersky logo in this picture illustration taken, February 1, 2022. REUTERS/Dado Ruvic/File Photo Purchase Licensing Rights
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Russian Cybersecurity Firm Kaspersky to Exit US

3D printed models of people working on computers and padlock are seen in front of a displayed Kaspersky logo in this picture illustration taken, February 1, 2022. REUTERS/Dado Ruvic/File Photo Purchase Licensing Rights
3D printed models of people working on computers and padlock are seen in front of a displayed Kaspersky logo in this picture illustration taken, February 1, 2022. REUTERS/Dado Ruvic/File Photo Purchase Licensing Rights

Russia's Kaspersky Labs will leave the United States, according to a pop-up seen by users on the anti-virus software maker's US website, nearly a month after the Biden administration announced plans to bar sales of the company in the country.

Last month, US Commerce Secretary Gina Raimondo announced plans to bar the sale of anti-virus software made by Kaspersky in the country, citing security risks posed by Russia's influence on the cybersecurity company.

Kaspersky did not immediately respond to a Reuters request for comment.

The government also slapped sanctions in June on Kaspersky's senior leadership, including the chief business development officer, chief operating officer, legal officer and corporate communications chief, citing cybersecurity risks.

CNN on Monday reported that Kaspersky Labs will "gradually wind down" its US operations and lay off US-based employees, starting July 20.

Kaspersky's US website did not allow consumers to purchase any products, citing "purchase is unavailable for US customers".

The new restrictions by the US government on inbound sales of Kaspersky software, which would bar downloads of software updates, resales and licensing of the product, will come into effect on Sept. 29.

New US business for Kaspersky are to be blocked 30 days after the restrictions were first announced on June 20.