During Apple’s October earnings call, chief executive officer Tim Cook hinted that the Apple Card was planning 24-month 0 percent financing for iPhone purchases. Apple has already updated the Wallet app on iOS with the new monthly installment option.
He also said that every Apple Card owner who uses it to buy and finance an iPhone with 0 percent interest will also get 3 percent Daily Cash on their total purchase.
A full explanation of how the payments work when users pay their Apple Card balance is available under the “Learn More” link in the Wallet app. The minimum payment amount for the card will include the required monthly payment for the installment plan for customers sign up to pay for an iPhone using the card’s installment option.
It is not known whether Apple Card Monthly Installments and 0 percent interest will be offered to finance other Apple products like the iPad.
Last month, Goldman Sachs — the bank behind the Apple Card — said it doled out about $10 billion in credit lines in just over a month for the card. Apple Card customers had $736 million in loan balances at the end of September.
Goldman Sachs CEO David Solomon called the Apple Card “the most successful credit-card launch ever” in an October investor call.
The Apple Card is Goldman Sachs‘ latest inroad into the retail consumer business after establishing its online Marcus brand, which makes unsecured personal loans, in 2016.
“In three short years, we have raised $55 billion in deposits on the Marcus platform, generated $5 billion in loans, and built a new credit card platform and launched Apple Card,” Solomon said on the call, adding that, “we’ve been pleased to see a high level of consumer demand for the product. From an operational and risk perspective, we’ve handled the inflows smoothly, and without comprising our credit underwriting standards.”