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Apple (AAPL) Prepping Monthly Payment Plans for Apple Card
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Apple (AAPL - Free Report) is working on offering Apple Card customers the option to buy a slew of Apple products for interest-free financing over a period of six or 12 months, per a Bloomberg report. The company had begun offering a 24-month no-interest payment plan for the iPhone in 2019.
Reportedly, Apple will allow cardholders to purchase iPads, Macs, the Apple Pencil, iPad keyboards, and the Mac XDR Display monitor with 12 monthly interest-free payments while for AirPods, HomePod smart speaker and Apple TV, the plans will be six months interest free.
Meanwhile, payments will be handled through the Apple Card section of the iPhone's Wallet app with charges added to the monthly Apple Card bill. Moreover, customers eligible for education discounts will be able to take advantage of these plans.
Apple Pushes Card Services Amid Pandemic
Launched in August 2019, the Apple Card is designed for iPhone users and comes with several benefits including no fees, daily cash-back rewards, interest-free monthly payments and works with Apple Pay. It also exists as a physical titanium credit card.
Not only will extending the installment plans to additional devices help increase sales of the Apple products involved, it just might result in more enrollments for the card, which Apple is offering through a partnership with investment banking giant Goldman Sachs (GS - Free Report) .
It would also represent an extension of Apple’s efforts to address economic hardship during the pandemic. For consumers, it will provide a way to more easily acquire other Apple products, without needing a hefty outlay. The Apple Card neither charges an annual fee nor a late fee.
Apple has already assisted Apple Card customers by extending a payment deferment program through June, helping those who are enduring financial hardship during the ongoing coronavirus pandemic.
Apple’s Growing Card Payment Services
Apple is updating its privacy policy for Apple Card to enable sharing more anonymized data with Goldman Sachs. We believe that the updated policy will help Goldman Sachs in creating a new credit assignment model.
Moreover, Apple introduced an opt-in option, allowing users to share more data with Goldman Sachs if they don't get approved for the Apple Card at first pass. The data will require users’ Apple product and service purchase history, how long a user has had an Apple ID, and how much they routinely spend with Apple.
The above initiatives are part of Apple's effort to expand beyond the iPhone into boosting revenues from its gamut of services.
In second-quarter fiscal 2020, Services revenues grew 16.6% from the year-ago quarter to $13.35 billion, a record in the company’s history. Robust performance of App Store, Apple Music, Video, cloud services, and App Store search ad business drove Services revenues.
Moreover, Apple’s new services — Apple TV Plus, Apple Arcade, Apple News Plus and Apple Card — continued to add users, content and features.
The coronavirus health scare has led to significant increase in cashless transactions. This Zacks Rank #2 (Buy) company’s initiatives are expected to help it compete better with the likes of Alphabet (GOOGL - Free Report) owned Google Pay and PayPal Holdings (PYPL - Free Report) , which reported a record 7.4 million new customers in April and expects a strong recovery in payment volumes in the second quarter on higher online spending due to the coronavirus pandemic.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Apple (AAPL) Prepping Monthly Payment Plans for Apple Card
Apple (AAPL - Free Report) is working on offering Apple Card customers the option to buy a slew of Apple products for interest-free financing over a period of six or 12 months, per a Bloomberg report. The company had begun offering a 24-month no-interest payment plan for the iPhone in 2019.
Reportedly, Apple will allow cardholders to purchase iPads, Macs, the Apple Pencil, iPad keyboards, and the Mac XDR Display monitor with 12 monthly interest-free payments while for AirPods, HomePod smart speaker and Apple TV, the plans will be six months interest free.
Meanwhile, payments will be handled through the Apple Card section of the iPhone's Wallet app with charges added to the monthly Apple Card bill. Moreover, customers eligible for education discounts will be able to take advantage of these plans.
Apple Pushes Card Services Amid Pandemic
Launched in August 2019, the Apple Card is designed for iPhone users and comes with several benefits including no fees, daily cash-back rewards, interest-free monthly payments and works with Apple Pay. It also exists as a physical titanium credit card.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Not only will extending the installment plans to additional devices help increase sales of the Apple products involved, it just might result in more enrollments for the card, which Apple is offering through a partnership with investment banking giant Goldman Sachs (GS - Free Report) .
It would also represent an extension of Apple’s efforts to address economic hardship during the pandemic. For consumers, it will provide a way to more easily acquire other Apple products, without needing a hefty outlay. The Apple Card neither charges an annual fee nor a late fee.
Apple has already assisted Apple Card customers by extending a payment deferment program through June, helping those who are enduring financial hardship during the ongoing coronavirus pandemic.
Apple’s Growing Card Payment Services
Apple is updating its privacy policy for Apple Card to enable sharing more anonymized data with Goldman Sachs. We believe that the updated policy will help Goldman Sachs in creating a new credit assignment model.
Moreover, Apple introduced an opt-in option, allowing users to share more data with Goldman Sachs if they don't get approved for the Apple Card at first pass. The data will require users’ Apple product and service purchase history, how long a user has had an Apple ID, and how much they routinely spend with Apple.
The above initiatives are part of Apple's effort to expand beyond the iPhone into boosting revenues from its gamut of services.
In second-quarter fiscal 2020, Services revenues grew 16.6% from the year-ago quarter to $13.35 billion, a record in the company’s history. Robust performance of App Store, Apple Music, Video, cloud services, and App Store search ad business drove Services revenues.
Moreover, Apple’s new services — Apple TV Plus, Apple Arcade, Apple News Plus and Apple Card — continued to add users, content and features.
The coronavirus health scare has led to significant increase in cashless transactions. This Zacks Rank #2 (Buy) company’s initiatives are expected to help it compete better with the likes of Alphabet (GOOGL - Free Report) owned Google Pay and PayPal Holdings (PYPL - Free Report) , which reported a record 7.4 million new customers in April and expects a strong recovery in payment volumes in the second quarter on higher online spending due to the coronavirus pandemic.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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