Tim Cook, Apple CEO said that Apple is readying to launch new Apple Card monthly payment plans. Similar to what it introduced at the end of 2019 for iPhone. In addition to this, Apple has also their own payment app that is called Apple Pay. According to a recent survey. there is a huge rise in the Apple Pay transaction since the arrival of COVID-19.
According to Bloomberg. “The new financing will let customers buy products including iPad, Mac, Apple Pencil, Pro Display XDR on their Apple Card in monthly instalments, over 12 months at 0% interest. Apple will offer six-months interest free plans for cheaper products like Apple TV, AirPods and HomePod. This is less than the 24 months free financing the Apple Card offers for iPhone purchases”.
The new program is quite similar to that of iPhone program. The purchase is added to the Apple Card transaction history. Once the 0% interest 6 or 12 months period is up. The remainder of the balance is added to the card. And is paid in accordance to the user’s standard Apple Card interest rate.
The 12 month plan will be available for iPads, Macs, the Apple Pencil, iPad keyboards, and the Pro Display XDR, while six month payment plans will be offered for AirPods, Apple TV, and HomePod.
The Customers will be able to make payments through the Wallet app such as Apple Pay, with charges added each month to their Apple Card bills.
Apple rolled out a 24-month interest free iPhone instalment plan for. Apple Card users back in December, which lets customers purchase an iPhone with the Apple Card. And pay over the course of 24 months. The new device payment plans will work in the same way. Customers will get three percent Daily Cash back for their purchases. And the plans will be compatible with Apple’s educational discounts.
During Apple’s most recent earnings call, Apple CEO Tim Cook said. “As you know, we launched the payment plan earlier on Apple Card for iPhone”. He further added, “We’re working on that for other products and you’ll see something on that shortly”.
In the past, Apple has run 0% financing promotions in partnership with third-parties like Barclaycard. But now it has its own credit card, it is gradually moving all promotions to be based on Apple Card in the US.
As the financing requires an Apple Card, it naturally means the offer will be limited to the United States for the foreseeable future. Goldman Sachs said. “It is interested in bringing Apple Card to more geographic markets but nothing seems imminent at this time.