Apple and buy now, pay later (BNPL) payment provider Klarna are joining forces to offer customers the option to lease a new Apple device in the U.S.
The tech giant announced the program, called Apple Upgrade, on Tuesday, and said that customers will be able to lease eligible iPhone, iPad, Mac and Apple Watch devices.
Apple Upgrade offers 12- and 24-month leasing options for iPhone and Apple Watch, and 24- and 36-month leasing options for Mac and iPad. Leasing prices start as low as $17.99 per month for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad.
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When customers enroll in Apple Upgrade, they can trade in their current device through Apple Trade-In to lower their monthly payments during the leasing term, Apple said. At the end of the leasing term, customers can choose to upgrade to the latest Apple device model, purchase the leased device outright or return it.
APPLE RAISES IPAD AND MACBOOK PRICES AS MEMORY CHIP COSTS SURGE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 336.91 | +3.89 | +1.17% |
| KLAR | KLARNA GROUP PLC | 18.49 | +1.13 | +6.51% |
Apple announced that it would discontinue its iPhone Upgrade Program and iPhone Payments with the rollout of Apple Upgrade. Both programs allowed qualified customers to purchase an iPhone through a 24-month, interest-free installment loan, while the iPhone Upgrade Program also included AppleCare+ and an option for customers to upgrade their device after 12 payments.
The tech giant’s partnership with Klarna comes as more Americans are choosing BNPL options to finance purchases. About 51% of Americans say they have used installment plans for online purchases, according to a Gallup survey.
While Klarna is best known as a BNPL provider, Apple Upgrade is structured as a lease rather than a traditional BNPL loan.
Apple Upgrade is available through Apple’s website and U.S. Apple Store locations.
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