Apple scraps its Pay Later loan scheme in US

Apple is ending its in-house buy now, pay later scheme in the US, which it launched just last year.

The technology giant says it will now offer customers payment plans through third-party credit and debit card lenders.

Existing borrowers will be able to continue managing payments using Apple's Wallet app.

The decision marks a retreat for Apple from plans to offer traditional financial services.

Apple Pay Later users in the US could break up the cost of purchases worth up to $1,000 (£788) into four instalments over six weeks without having to pay interest or fees.

The scheme represented a move into providing financial services, with Apple effectively offering customers loans, instead of resorting to banks and other traditional lenders.

The company used a new subsidiary, Apple Financing, to issue the loans.

It came at a time when US interest rates were close to zero, making both borrowing much more attractive.

However, as central banks put up rates to tackle rising prices, such plans became less appealing.

During its annual developer event last week, Apple announced that it would be partnering with banks , including Citi in the US, HSBC in the UK and ANZ in Australia, to offer instalment payment options.