Apple Discontinues Financing Options in the United Kingdom

[MacRumors]

Apple has stopped offering financing options to customers in the United Kingdom, as indicated by the elimination of its UK financing page, which was removed from the UK Apple site this afternoon.

Apple previously allowed customers in the UK to sign up for financing on Apple products through PayPal Credit or Barclays when checking out from the online Apple Store. PayPal Credit could be used on purchases with a £99 minimum, while Barclays was available for purchases over £399.

When making a purchase through the Apple site in the UK, there are now no financing options to select at checkout, and the finance pages that were previously available now redirect to the main UK site.

Apple previously eliminated financing options in Canada back in June of 2017, but in the United States, Apple still offers financing through the Barclaycard Visa that includes Apple Rewards points.

Apple also continues to offer financing options for educational institutions in the UK, and financing on iPhones continues to be available through the UK iPhone Upgrade Program in partnership with Barclays.

Article Link: Apple Discontinues Financing Options in the United Kingdom

 

[mtneer]

If I understand how this worked correctly, the bank was assuming the responsibility for the risk of getting customers to pay up on time, whereas Apple booked revenue and shipping volumes? Did they stop it because the banks saw higher defaults or is this Apple just switching providers like when Costco moved from AMEX to Visa?

 

[sublunar]

interest rates probably going up in the medium term in the UK I think

 

[orbital~debris]

I wonder - what's the thinking behind this?

 

[thadoggfather]

Timmy punishes Brexit movements, possibly

Maybe he’s on board wit Open Society Foundations?

 

[dontwalkhand]

Nobody really cares to do this anyway. “Bring your own financing” via a credit card is what most do.

 

[OldSchoolMacGuy]

If I understand how this worked correctly, the bank was assuming the responsibility for the risk of getting customers to pay up on time, whereas Apple booked revenue and shipping volumes? Did they stop it because the banks saw higher defaults or is this Apple just switching providers like when Costco moved from AMEX to Visa?

That's generally how these things work. Very very few companies do their own financing and instead partner with a lender to do so. Much cheaper to give the bank a couple percentage points of interest than have to deal with stuff like trying to collect unpaid debt and facilitate the whole thing.

 

[tigertazz]

How will the iPhone upgrade program work as it relies on Barclays financing

 

[Gorms]

What??? Whaaaaat??? Why isn’t anyone else up in arms about this? How the fudge am I gonna pony up for a goddamn MacBook that costs as much as a car when they finally release the model i want???

*** kicks over a chair, stubs toe ***

Right, I’m calm. This better be some temporary thing. Switching suppliers or offering their own credit or some nonsense.

 

[haydn!]

After a few years of bad press, store finance and credit has a pretty bad reputation in the UK so I suspect it was getting less use than it used to too.

Credit cards or small loans through high street banks are much more cost effective too, especially for Apples price points.

 

[Glideslope]

How will the iPhone upgrade program work as it relies on Barclays financing

iPhone Upgrade uses Citizens Bank in the US.

 

[Saturnine]

Well this is a disappointment. I bought my MacBook through Apple’s financing. I suppose I’ll have to arrange my own next time but the existing options were convenient.

As I’m too lazy to check, is the iPhone Upgrade Programme still available for new sign-ups?

 

[CWallace]

If I understand how this worked correctly, the bank was assuming the responsibility for the risk of getting customers to pay up on time, whereas Apple booked revenue and shipping volumes?

I have the Barclaycard Visa with Apple Rewards VISA and it's just a normal credit card issued by Barclays Bank. They run promotions a couple of times a year where you get deferred financing on Apple products from 6 to 24 months (the latter very nice for my large purchases).

 

[Vorkeyjones]

I got my first iMac through Barclay Finance. I filled in the online form and was accepted instantly despite being unemployed. I still don’t understand why lol.

 

[SoggyCheese]

Why would anyone want Apple's credit anyway? John Lewis allows you to buy Apple stuff at 0% interest if you're wanting to do it that way.

 

[iGeek2014]

I guess part of the reason is probably down to 0% deals on credit cards too?

If you qualify for a decent promotional rate then paying Barclays/PayPal 14.9/17.9 (rep APR) seems like a poorer deal I guess.

 

[autrefois]

They obviously got rid of financing in Canada and the U.K. because there were just too many extra u's to deal with when people wanted to finance their "favourite" products. In the U.S. it's much less of a hassle since they only have to offer financing for our "favorite" products. And that's not even considering dealing with different "colours" on various products. Until the British and Canadians get their spelling under control, they'll just have to find other financing options... (Hopefully people won't take this the wrong way—just a bit of "humour".)

 

[Ad13]

They obviously got rid of financing in Canada and the U.K. because there were just too many extra u's to deal with when people wanted to finance their "favourite" products. In the U.S. it's much less of a hassle since they only have to offer financing for our "favorite" products. And that's not even considering dealing with different "colours" on various products. Until the British and Canadians get their spelling under control, they'll just have to find other financing options... (Hopefully people won't take this the wrong way—just a bit of "humour".)

T’is ‘u’ lot who can’t spell!!!

 

[Spendlove]

That is good for me. I drunkenly bought the iPhone 6S+ after a works party on PAYPAL CREDIT. Ouch!

 

[iGeek2014]

Just had another look as I already have a PayPal credit account; when you choose PayPal as the payment method it allows you to choose that over a Credit/Debit card....

Didn’t continue but am guessing it’s still an option?

 

[GarethR]

Just had another look as I already have a PayPal credit account; when you choose PayPal as the payment method it allows you to choose that over a Credit/Debit card....

Didn’t continue but am guessing it’s still an option?

That will simply use your available PayPal credit limit to fund the transaction as opposed to specific monthly payments over a set number of months.

 

[JamesMay82]

This sucks! I've not used the option before but with Macs getting more expensive it was nice to have the option of spreading the cost. I always noticed at Christmas they had a 0% offer on which to be fair is a no brainer even if you have the cash.

Hopefully they will bring it back but based on what happened it Canada that might not happen.

 

[OllyW]

How will the iPhone upgrade program work as it relies on Barclays financing

As I’m too lazy to check, is the iPhone Upgrade Programme still available for new sign-ups?

They seem to have removed all financing options from the UK website but the iPhone upgrade program is still available in UK Apple Stores.

 

[JamesMay82]

They seem to have removed all financing options from the UK website but the iPhone upgrade program is still available in UK Apple Stores.

They should incorporate the Macs into the iPhone upgrade program so its covered by the 0% finance.

 

[theluggage]

I wonder - what's the thinking behind this?

Probably some new consumer protection rules coming into force soon. There’s definitely new laws on dealing with customers in persistent debt starting in September although a quick google doesn’t reveal anything obvious related to Apple, but I expect it’s part of a bundle.