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AFP

Apple announced that it will no longer offer the buy-now, pay-later option through Apple Pay Later, a move that will cease to provide consumers with installment payments to purchase the tech giant's products.

Apple Pay Later loans allowed consumers in the U.S. to purchase Apple products online for up to $1,000 and pay it through four installments without interest. However, the same consumer-friendly bonus is being discontinued.

The move came after Apple announced that in the later part of this year, it will start to allow purchases with installment loans via Apple Pay through third-party entities like Affirm. It will also allow installment loans using credit cards.

"Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay," a spokesperson from Apple told CNBC.

Those who would like to purchase Apple products on installments would have to go through other financial intermediaries that are available in various countries all over then world.

On Apple's website, it informed users that Apple Pay Later was no longer offering new loans but an existing loan is not affected by the discontinuation. Those who have existing loans on Apply Pay Later would still be able to manager and pay for their loans.

"Apple Pay Later is no longer offering new loans for purchases with Apple Pay. Your existing Apple Pay Later loans and purchases are not affected. You can continue to manage your loan and view loan details in Wallet," the Apple website stated.

Before the Apple Pay Later was stopped, it allowed users to quickly apply for an installment loan right within the iPhone Wallet app. Approved users would find upon checkout a "Pay Later" option, NBC News reported.