Apple (NASDAQ:AAPL) is gearing up to allow consumers to purchase devices beyond the iPhone via installment payments using their Apple credit card.
In the next few weeks, the tech stock will begin letting customers spread the payments for Apple devices, including Mac computers, AirPods, and iPads over several months without having to pay interest, reports Bloomberg, citing people familiar with the matter.
Payments for costlier devices, including an iPad and Mac, can be spread out over 12 months, while cheaper devices, including AirPods, Apple TV, and its HomePod speaker, can be paid over the course of six months. Consumers won't have to pay interest. The payments will be evenly split and charged monthly to the Apple credit card.
Apple already lets customers pay off an iPhone via installment payments, first launching the feature in December. Customers are able to make interest free payments on the Apple credit card for 24 months. The payments are built into the Apple Wallet so customers can easily view their balances and payment history. The same will be true with the new offers, reports Bloomberg, noting Apple CEO Tim Cook said the iPhone program would be expanded when the company reported second-quarter results in April.
Enabling interest-free installment payments will not only drive sales of Apple devices but it may get more people to use its credit card, which it launched in conjunction with Goldman Sachs in August. The credit card is built into the iPhone's wallet app and offers perks beyond the interest-free payments, including daily cash back.