To streamline its lending offering, Apple (AAPL) will discontinue BNPL – buy now, pay later – in the U.S. It plans to replace the service with a new loan program that users may access through Apple Pay instead.
Apple users may choose installment loans that credit, debit cards, and lenders offer later this year. In reaction to the news, PayPal (PYPL) sold off sharply this month. Markets halted the PYPL rally at $68 as shares closed at $60.13.
In restaurant and artificial intelligence news, McDonald’s (MCD) ended a key project. Instead of letting the AI fad dictate its business process, the fast-food giant ended its two-year partnership with IBM (IBM). The two firms tested voice orders at drive-through kiosks powered by AI.
Shareholders should assume that McDonald’s could not justify the ROI (return on investment) on the endeavor. It is more effective to hire people to do a job that cannot be fully automated.
McDonald’s does not benefit from replacing workers with machines and technology in this case.
Education firm Chegg (CHGG) will rise by at least 20% this morning. The firm will cut 23% of its global headcount or 441 of its staff. Chegg will save $40 million – $50 million from the restructuring plan.