Wallet app hints at imminent Apple Card iPhone installment plan launch

Apple as offered more details about how Apple Card Monthly Installments will function, where customers can buy an iPhone on an interest-free payment plan, with the information a possible sign of the feature's imminent launch in the United States.

During the October conference call for Apple's quarterly results, Apple CEO Tim Cook revealed an upcoming feature for Apple Card where customers could buy a new iPhone from its stores. Under the program, customers will gain the usual 3% cash back on the purchase, while the 24-month installment plan would be interest-free and would be devoid of fees and other charges.

New text has been included in the Wallet app where customers pay their Apple Card balance, under the "Learn More" link. While the page explaining how Apple Card payments function has been there for quite some time, the extra information on the page first reported by 9to5Mac outlines the terms of the feature for consumers.

The page advises customers who sign up to pay for an iPhone using Apple Card Monthly Installments the minimum payment amount for the card will include the required monthly payment for the installment plan itself.

Reiterating how installment payments aren't subject to interest, unlike other Apple Card purchases, customers are also able to make overpayments towards the installment plan itself. Contributing more money to a plan can help reduce the overall number of payments needed, however customers are still required to pay their regular installment plan payment the following month.

Users paying the total balance will do so for the total amount spent on Apple Card, which includes any remaining iPhone balance.

While the inclusion of the text in the Wallet app does suggest the feature could launch in the near future, it does not state exactly when it will be available to use. During the October conference call, Cook advised during his comments the feature would arrive "later this year," rather than a more precise timetable.

24 Comments

iadlib 116 comments · 14 Years

About 4 years ago

Wish they’d do that for Macs, too.

Appleish 711 comments · 8 Years

Barclay is still beating them. Which sucks, because they are a criminal bank.

GeorgeBMac 11421 comments · 8 Years

Very Interesting!

The Apple / Goldman partnership is venturing further into FinTech expanding its role and blurring the lines between a simple credit card and traditional banking.

AppleCash has already begun to blur the line between FinTech and traditional checking accounts -- essentially who needs a checking account if you can pay with AppleCash?

This installment feature is blurring the line between FinTech and traditional installment loans -- who needs an installment loan if one is available right from your phone or card?

Apple and Goldman are stepping into a whole new world of banking and finance. They may have an ultimate plan and goal. But I suspect they will be taking it one step at a time and then evaluating and deciding what the next step will be.

Here in the U.S. we are conditioned to a highly structured retail banking systems with rigid boundaries. But that is an isolated and restricted view: In undeveloped countries the banking systems are nearly non-existent and/or inaccessible to the masses -- and a new system is needed and welcomed. In developing countries both the people and entrepreneurs are anxious to open up new, modern, customer friendly methods of delivering the services currently delivered by traditional banking.

I am very happy to see Apple on the cusp of that trend. Nice Job Tim!

I look forward to the day that I can put away my wallet and all the cash and cards in it -- including ID & medical cards -- and just carry my phone.

... I am glad Apple is building that paradigm because I would not trust anybody else to do it.

Folio 698 comments · 7 Years

Amazon offers interest-free payment plan too on select items (Prime card through Chase bank). Gave me the option on a kayak purchase. Not sure if they do it for Apple products, or if your credit score has to be a certain level.

knowitall 1648 comments · 11 Years

Seems excellent.
I just started using Apple Pay and that service is excellent.
I will probably apply for an Apple Card when it is available in the Netherlands.
Apple as a bank would be the next step.
Apple should use its common sense and its ethics and not hire money people from other banks or financial institutions.
This would be its product differentiator, not having money grabbing morally challenged managers and boards of directors etc.
I think they hit the jackpot with this type of product.