Apple, Inc. (NASDAQ: AAPL) on Tuesday ended its credit-card partnership with Barclays, Plc. (NYSE: BCS).
The move was part of the tech giant’s strategy to consolidate its financial offerings under the Apple Card, according to Bloomberg based on information from a memo sent to Apple employees.
Apple began to wind-down the relationship last year when it ended the Barclaycard Apple Rewards, which allowed cardholders to accumulate points with Apple purchases. The Barclaycard also allowed Apple Card users to purchase Apple products on an installment plan.
Existing Barclaycard holders can still use their cards like a normal credit card. But financing options, through Barclays, on Apple goods, have been halted.
2020 Apple Watch and iPad new products announced
Last week, Apple announced its new Apple Watch and iPad products. With the final exit of Barclaycard, the Apple Card is the only card that offers an interest-free installment option for consumers.
As of September, Apple users no longer have the option to apply for the Barclays credit card in retail stores or through the company’s website. It was the day when the tech giant revealed its next-generation Apple Watch models, iPad Air, and other updates.
Apple is trying to funnel consumers looking for financing options on Apple products to Apple Card to build out the card’s user base.
Naturally, the debut of new products and the ending of the Barclays partnership is designed to push more Apple customers to sign up for the Apple Card.
The tech giant launched the Apple Card just over a year ago. Ever since, it has been consolidating its financing offerings under the card, ever. Winding down the Barclay partnership was a necessary part of the plan.
Apple is planning to add more financing options for Apple products. And plans on giving consumers more reasons to sign up for an Apple Card, as well as encouraging cardholder customers to use their cards more.
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