Wallet app hints at imminent Apple Card iPhone installment plan launch

Posted:
in General Discussion edited December 2019
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.
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Comments

  • Reply 1 of 24
    Wish they’d do that for Macs, too. 
    pscooter63watto_cobra
  • Reply 2 of 24
    Barclay is still beating them. Which sucks, because they are a criminal bank.
  • Reply 3 of 24
    GeorgeBMacGeorgeBMac Posts: 9,269member
    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.
    christophblostkiwitrashman69Anilu_777watto_cobra
  • Reply 4 of 24
    FolioFolio Posts: 698member
    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.
  • Reply 5 of 24
    knowitallknowitall Posts: 1,648member
    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. 
    watto_cobra
  • Reply 6 of 24
    MplsPMplsP Posts: 2,944member
    Folio said:
    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.
    Yeah, but then you have to shop on Amazon

    I've never purchased an iPhone on an installment plan from the Apple Store - the last time I did it was from T-mo where they just divide up the payments and add them to your bill. When stores do this they generally have an arrangement with a bank that handles the financing, etc, so it would make total sense for Apple to do this with the Apple Card and Goldman Sachs. 

    I wonder how they’d handle it if you have a balance on your card and an installment plan iPhone? If you miss even a single payment most installment plans you end up paying all of the interest, so they would need to have some way of making sure the right amount of money goes to the iPhone and any credit card balance. Many banks like TCF would find some way to automatically put the money towards the credit card balance to cheat customers into paying finance fees on the phone. 
    Panamaniakwatto_cobra
  • Reply 7 of 24
    I wonder how they’d handle it if you have a balance on your card and an installment plan iPhone? If you miss even a single payment most installment plans you end up paying all of the interest, so they would need to have some way of making sure the right amount of money goes to the iPhone and any credit card balance. Many banks like TCF would find some way to automatically put the money towards the credit card balance to cheat customers into paying finance fees on the phone. 
    That’s my biggest gripe with the (most) current banking systems. Last year I was paying off a Chase card, at one point I needed to pull out cash for an emergency purchase, which bills at a higher interest than the regular credit purchase. When it came time to pay the bill, Chase wouldn’t allow me to pay back the cash advance first, until the remaining CC balance was zero. So every month I was hit with the ridiculously high interest charge. If I payed the minimum (I always payed more), more than half of my payment was interest fees. 
    Luckily I transferred the balance to a zero interest card and will be done and debt free in February if I stick to my plan.

    I get that banks are for profit business, but they really do try and get every penny they can from you in any and every way possible, customer value or satisfaction be damned.  

    I’ve been using my Apple Card for every day purchased for 2 months now, and just pay it off completely every month. So far it’s been great, and the cash back I get is better than I would get from other cards/banks due to my credit score. Others may have more options but for my use case, the percs are great and I’m learning some great info on my spending habits by using the transaction breakdown in the Wallet app. 
    GeorgeBMacwatto_cobra
  • Reply 8 of 24
    Question, is there a guide somewhere on how to use my Apple Card as the default/automatic payment for my current iPhone loan? And would that get me 3% cash back as if it where an Apple store purchase, or just 1% since it’s technically not Apple Pay?

    Right now I’m using my company American Express to make the payments (self employed so I’m the one paying for it...). 

    I need to see if ultimately the American Express rewards are worth more or less then the 1%-3% cash back from the Apple Card. 
    watto_cobra
  • Reply 9 of 24
    Question, is there a guide somewhere on how to use my Apple Card as the default/automatic payment for my current iPhone loan? And would that get me 3% cash back as if it where an Apple store purchase, or just 1% since it’s technically not Apple Pay?

    Right now I’m using my company American Express to make the payments (self employed so I’m the one paying for it...). 

    I need to see if ultimately the American Express rewards are worth more or less then the 1%-3% cash back from the Apple Card. 

    First:   Good job on a great plan getting your debt/interest payments under control.   Too many people never figure out what you figured out and then have had the discipline to stick to...

    There are essentially two ways to make automatic payments:   Either have your bank send a check every month (it's how I do my monthly bills) or have the company charge your credit card --- so I doubt if they would care what kind of card it is...
    *   Well, there is a third way, have the company do an ACH transaction to pull it from your checking account.   But that way sucks for a whole lot of different reasons.  In fact, i hate that that's how Goldman insists on being paid for my Apple Card.  I almost cancelled it for that reason.
    watto_cobra
  • Reply 10 of 24
    First:   Good job on a great plan getting your debt/interest payments under control.   Too many people never figure out what you figured out and then have had the discipline to stick to...

    There are essentially two ways to make automatic payments:   Either have your bank send a check every month (it's how I do my monthly bills) or have the company charge your credit card --- so I doubt if they would care what kind of card it is...
    *   Well, there is a third way, have the company do an ACH transaction to pull it from your checking account.   But that way sucks for a whole lot of different reasons.  In fact, i hate that that's how Goldman insists on being paid for my Apple Card.  I almost cancelled it for that reason.
    Thx for the reply, i have auto payments with my Amex card now. What I’m wondering is if I can get 3% cash back if I switch to my Apple Card, as that is what the article is about, or if it’ll just post as a typical CC charge @ 1%?
    Ill txt costumer service tomorrow and see what they say, will try and update this if I can remember to!
    GeorgeBMacwatto_cobra
  • Reply 11 of 24
    First:   Good job on a great plan getting your debt/interest payments under control.   Too many people never figure out what you figured out and then have had the discipline to stick to...

    There are essentially two ways to make automatic payments:   Either have your bank send a check every month (it's how I do my monthly bills) or have the company charge your credit card --- so I doubt if they would care what kind of card it is...
    *   Well, there is a third way, have the company do an ACH transaction to pull it from your checking account.   But that way sucks for a whole lot of different reasons.  In fact, i hate that that's how Goldman insists on being paid for my Apple Card.  I almost cancelled it for that reason.
    Thx for the reply, i have auto payments with my Amex card now. What I’m wondering is if I can get 3% cash back if I switch to my Apple Card, as that is what the article is about, or if it’ll just post as a typical CC charge @ 1%?
    Ill txt costumer service tomorrow and see what they say, will try and update this if I can remember to!
    If you switch your card for monthly iPhone payments to Apple Card you will get the 3% cash back. 
    GeorgeBMacwatto_cobra
  • Reply 12 of 24
    So is this going to replace the Citizen’s One loan currently used with iPhone Upgrade program. I’d love that.
    watto_cobraPanamaniak
  • Reply 13 of 24
    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.
    I just wish Apple Cash and the Apple Card were available in Canada! I’d love to get the best of 2020 on it. 
    GeorgeBMacwatto_cobra
  • Reply 14 of 24
    I bought a new iPhone at the local Apple Store a few days ago. The new program is not in effect yet. It's "supposed to be" but it's not. The Apple Store rep was aware of it, had recently been trained on it, and was excited that I was going to be his first customer to charge the iPhone installment plan to an Apple card. However, as we completed the transaction it became clear it wasn't going to work. The final workaround was for me to stick with a Citizens One loan and have the monthly installment balance charged to my Apple card. I still get the 3% on the Apple card because it's payment for an Apple product. 
    GeorgeBMacwatto_cobra
  • Reply 15 of 24
    jcs2305jcs2305 Posts: 1,173member
    Folio said:
    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.
    They also offer the same with the Amazon Prime store card through Synchrony Bank. 5% on Amazon purchases and 0% interest payment plan. I think the payment plan offer depends on the amount you are spending. 
  • Reply 16 of 24
    First:   Good job on a great plan getting your debt/interest payments under control.   Too many people never figure out what you figured out and then have had the discipline to stick to...

    There are essentially two ways to make automatic payments:   Either have your bank send a check every month (it's how I do my monthly bills) or have the company charge your credit card --- so I doubt if they would care what kind of card it is...
    *   Well, there is a third way, have the company do an ACH transaction to pull it from your checking account.   But that way sucks for a whole lot of different reasons.  In fact, i hate that that's how Goldman insists on being paid for my Apple Card.  I almost cancelled it for that reason.
    Thx for the reply, i have auto payments with my Amex card now. What I’m wondering is if I can get 3% cash back if I switch to my Apple Card, as that is what the article is about, or if it’ll just post as a typical CC charge @ 1%?
    Ill txt costumer service tomorrow and see what they say, will try and update this if I can remember to!
    I bought my iPhone 11 on Apple's iPhone Upgrade Program by Citizen's bank, and I used my Apple Card as the payment method.  I get the 3% back every month when the %25 payment hits.

    So if one is able to use one's Apple Card for the Citizens Bank payment, it's essentially the same as this new program,  It just cuts outs the Citizens middle man.
    Panamaniak
  • Reply 17 of 24
    StrangeDaysStrangeDays Posts: 11,157member
    Question, is there a guide somewhere on how to use my Apple Card as the default/automatic payment for my current iPhone loan? And would that get me 3% cash back as if it where an Apple store purchase, or just 1% since it’s technically not Apple Pay?

    Right now I’m using my company American Express to make the payments (self employed so I’m the one paying for it...). 

    I need to see if ultimately the American Express rewards are worth more or less then the 1%-3% cash back from the Apple Card. 
    If it's the standard Citizens iPhone loan, just go to their website and change your payment info there to your Apple Card number. You'll get the 3% reward.

    https://www.fsdsapps.com/ecs/citizens-one-apple/#!/citizens-one-apple-auth/login
    Panamaniak
  • Reply 18 of 24
    Sweet, thx all for the replies, it is a Citizens Loan so looks like I’ll be able to get the 3%. Will switch it this evening after work. 
    Much Obliged! 
  • Reply 19 of 24
    eugeeuge Posts: 19member
    So if one is able to use one's Apple Card for the Citizens Bank payment, it's essentially the same as this new program,  It just cuts outs the Citizens middle man.

    Not necessarily. The loan part would be the same, but it wouldn't include the upgrade policy of iUP so you'd have to sell your phone private party.

  • Reply 20 of 24
    Question, is there a guide somewhere on how to use my Apple Card as the default/automatic payment for my current iPhone loan? And would that get me 3% cash back as if it where an Apple store purchase, or just 1% since it’s technically not Apple Pay?

    Right now I’m using my company American Express to make the payments (self employed so I’m the one paying for it...). 

    I need to see if ultimately the American Express rewards are worth more or less then the 1%-3% cash back from the Apple Card. 

    First:   Good job on a great plan getting your debt/interest payments under control.   Too many people never figure out what you figured out and then have had the discipline to stick to...

    There are essentially two ways to make automatic payments:   Either have your bank send a check every month (it's how I do my monthly bills) or have the company charge your credit card --- so I doubt if they would care what kind of card it is...
    *   Well, there is a third way, have the company do an ACH transaction to pull it from your checking account.   But that way sucks for a whole lot of different reasons.  In fact, i hate that that's how Goldman insists on being paid for my Apple Card.  I almost cancelled it for that reason.
    Thanks for the reply, I have it set up to automatically pay with my Amex now, looking to switch to Apple Card if it gets me 3% cash back. It’s not clear if they consider it an Apple Store purchase (likely not) @ 3% or just regular CC transaction @ 1%. If it’s 1% I’ll just leave it on the Amex card and get the rewards from that. 
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