Apple will soon add a new feature to Apple Card that will allow users to buy an iPhone at 0% interest over 24 months. Tim Cook made this announcement while on the earnings call earlier today. He did not provide any timeframe as to when the feature will go live but it will likely happen before the holiday season.
In addition to 0% interest, customers using an Apple Card to buy an iPhone will also get 3% cashback. This definitely makes using an Apple Card to buy an iPhone a very attractive proposition over any other form of payment method. Most carriers and retailers also offer 0% interest on new iPhones for a similar period of time so Apple is not really offering anything new here. But when coupled with the 3% cashback, it makes the whole deal a bit more attractive.
During the earnings call, Tim Cook also said that he believes Apple Card was the most successful credit card launch ever in the United States. However, he did not divulge any numbers on how many users Apple Card has managed to garner since its launch in August this year.
Tim Cook also talked about the growth of Apple Pay during the earnings call. He noted that Apple processed over 3 billion transactions in the July-September quarter which is more than what PayPal processed and it is growing at 4x the rate. He also said that Apple Pay is now available in over 49 markets and backed by 6,000 issuers.