Apple (AAPL) to reportedly launch a device leasing program with Klarna

Apple Upgrade will allow users to lease products like iPhone, Mac, iPad, and Apple Watch.

Apple is reportedly set to launch a new service next week in an attempt to address the surging prices of its products and the subsequent decrease in consumer spending. It’s called Apple Upgrade, and will apparently allow customers to lease devices from the company through a pay-later model.

Bloomberg reported the existence of the Apple Upgrade program, which is reported to be aiming for a July 28 launch. The outlet claims that Apple has partnered with Klarna, a pay-later service that’ll be the financial backer for Apple Upgrade. The service is expected to be available first in the United States before expanding to other territories.

The service will cover products including iPhone, Mac, iPad, and Apple Watch. Customers will be able to pay off devices early or keep them for an additional fee at the end of their term. Terms will run for 24 or 36 months depending on the device.

Apple (AAPL) stock saw a bump on the news, and Klarna received a larger spike before eventually giving up those gains.

Apple has yet to make an official announcement regarding the service. Apple recently announced price increases to MacBook and iPad products. It’ll be the latest company to introduce a pay-later program, with Microsoft recently announcing a similar service for Xbox consoles.

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