AppleAAPL

had big dreams for fintech domination, but regulatory pressures and a rocky partnership with Goldman SachsGS

have scaled back those ambitions. Earlier this week, the tech giant abruptly shuttered its “buy now, pay later” (BNPL) service, Apple Pay Later, which allowed customers to pay for purchases with interest-free installments. Moving forward, Apple plans to adopt a more traditional approach to offering payment options.

• The decision comes amid an increased regulatory oversight in the BNPL industry, which now requires companies like AfterPaySQ
  and PayPalPYPL
  to be treated like credit card companies.
• Apple plans to offer traditional installment loans and BNPL options in Apple Pay through partnerships with legacy banks and BNPL company AffirmAFRM
  .

Shell game: Apple’s new approach involves stepping back from direct lending and letting other financial institutions take the lead. Apple Pay customers will soon be able to apply for loans from banks and lenders in Australia, Spain, the UK, and the US when making in-app or online purchases. This shift means Apple Pay will have a global reach and offer more options. These features will launch in the Fall, with more partners expected to join in the future.