Speculation Ends as Klarna and Apple Debut a Leasing Program – Digital Transactions
Apple Inc. and Klarna AB are launching a new lease program called Apple Upgrade for Apple devices that sees consumers apply for a Klarna account. Consumers will use the Klarna app to monitor their Apple Upgrade account.
Initially rumored last week, the now verified program offers users 12- and 24-month lease options for Apple iPhone and Watch and 24- and 36-month options for Mac and iPad devices. This program replaces the Apple iPhone Upgrade Program and iPhone Payments. Apple Upgrade is available to shoppers online and in-store.
Applicants submit to a soft credit check performed by Klarna. Leases are only available to U.S. residents. Only consumers who are at least 18 years old, have a valid Social Security Number and an accepted credit or debit card can apply. They also must have an Apple account in good standing, a Klarna account, and be able to receive security codes via text.
Other fine print says there may be early termination fees if the lease is ended prior to the end of the lease term. Consumers also are responsible for all damages or loss during the lease period.
Apple’s relationship with buy now, pay later and installment payments has evolved. For approximately 15 months, Apple offered its own BNPL program—Apple Pay Later—but that program ended in 2024 in favor of using third-party providers such as Affirm Holdings Inc. and Klarna. Apple also offers installment payments when a purchase is made with the Apple Card.
