Apple kills Barclays credit card financing in favor of Apple card
Apple customers will no longer be offered the option to finance their purchases through the Barclaycard Financing Visa, as retail employees informed that the partnership between the two companies ended on September 15.
For a long time, Apple customers were able to purchase their purchases using a deal with Barclaycard where they could apply for a credit card, reducing a large purchase to more manageable installments. As of September 15, this offer will no longer be available to customers purchasing hardware or making large purchases.
According to a note to employees seen through Bloomberg, users will not be able to apply for the credit card in-store or through the site starting Tuesday. Existing cardholders will still be able to use the card, but just like a regular credit card.
Rather than Barclays, customers in the United States will be geared more towards Apple Card, a branded card managed by Goldman Sachs. Apple Card started offering a finance option for iPhones from December 2019, but widened it to cover others products, including Macs, iPads, and accessories in June.
Apple Card funding varies by device, with more expensive items having longer 12-month options, while smaller purchases may have 6-month 0% interest plans. Product bundles can also be acquired and put on the longer installment plan.
In response to a request for Appleinsider, Barclays confirmed that existing Visa Barclaycard with Apple Reards Card users may still be eligible for a new promotional offer on “Qualifying Apple Purchases”, offering a 0% interest period at various levels. For purchases under $ 499, the period is six months, increasing to 12 months for purchases totaling up to $ 998.99 and 18 months for $ 999 or more.
After the period, these customers would be charged interest at the standard annual purchase percentage rate, which is currently $ 13.99.
The split between Apple and Barclays over the long-standing partnership erupted in August 2019, ahead of the Apple Card launch. After nearly a decade in business, Barclays that month stopped offering Apple gift cards to new customers and stopped offering additional reward points on Apple purchases.
The change in partnership with Barclaycard will largely affect customers based in the United States. Apple has funding deals for other regions, which will likely remain intact as Apple Card is currently not available outside of the United States.
Update: Barclaycard response regarding existing customers added.