Klarna Rides Apple's Coattails with New Leasing Program

Apple recently launched its Apple Upgrade leasing program, allowing customers to pay low monthly payments for the latest devices. Klarna is partnering with Apple to provide the financial infrastructure for this new program.

The leasing plan offers flexible payment options, starting at $17.99 per month, and leases run 12-24 months for iPhone and Apple Watch products, while 24-36 months for Mac and iPad. This could boost sales by encouraging customers to upgrade more frequently and lease higher-end devices than they would buy outright.

Klarna will own the leased devices throughout the term and can refurbish and resell any devices that get returned at the end of their lease, providing two income streams for the company. The partnership has significant potential for Klarna's business, with Apple generating over $200 billion in sales last year from the iPhone alone.