The recently-launched Apple Card is already adding another incentive to its model. Apple is set to introduce interest-free finance on iPhone products via this service.
New way to pay
The payment service was released in the United States on August 20 but is yet to made available elsewhere. However, even before an international release, Apple has added an important feature. Users of the card can pay for a new iPhone on a 24-month finance plan, which is interest-free.
Up until now, the card has been promoted as a no-fee credit card that can be used digitally with Apple Pay. Furthermore, Apple also offers the option to apply for a physical, titanium card, which can be used for worldwide purchases.
With the launch of a finance service, Apple is cutting out the middle man when it comes to financing upgrades. Traditionally, iPhone users usually finance an upgrade via their carriers. The deals on these plans often can lead to heavy interest rates, which can complicate the finances of the buyer.
Convenient if used correctly
Now, with an interest-free option straight from the manufacturer, the purchase of an upgrade is more streamlined. Combined with the Apple Card’s digital financial summary interface, this could be a massively more convenient method of financing an iPhone than standard methods.
This move can be likened to PayPal’s introduction of finance options not so long ago. The online payment service introduced interest-free payments over short-term periods. The repayment can then be monitored on PayPal’s online portal, making it easy for purchases to track their finances.
However, just like with all financing options, the decision to use this service needs to be taken with care. With it being so easy to make a not so cheap purchase on a finance plan from the touch of a few buttons, a lot of users may spontaneously get themselves into accidental debt. Hopefully, the right checks are made, along with suitability factors being considered.
It will be interesting to see how the buying habits of iPhone users will change with this introduction. Many users will now have two separate payments going out each month to fund their phone use.
Speculatively, Apple could consider introducing this finance option for the purchase of their other products down the line. Furthermore, Apple may consider further expanding the service’s use to purchase other non-Apple consumer goods if the results are positive.
Ultimately, Apple is deep within its journey of becoming an all-encompassing payment solution following the rollout of Apple Pay, then Apple Card, and now finance. It is likely that we will see further developments next year from other manufacturers to compete in the mobile payment market.
What do you think of the introduction of financing via Apple Card? Let us know your thoughts in the comment section.