Apple has officially launched Apple Upgrade, a leasing program that lets customers pay monthly for an iPhone, iPad, Mac, or Apple Watch instead of buying the device outright. The program went live today on Apple’s website in partnership with Klarna, replacing the iPhone Upgrade Program that Apple has offered since 2015.

How the program works

Eligible hardware will be available in 12, 24, or 36-month payment options. “Once you get your new device, we’ll send you a pre-paid kit to return your previous one,” says the company. Additionally, if you purchase a device through this route, it will be eligible for AppleCare protection from accidental damage on the lease units.

There is, however, a caveat. If you choose to lease a device on a 24-month payment plan, you can only upgrade to a new device after the 24-month term ends. If you want to upgrade before then, you’ll need to pay an early termination fee for the next upgrade.

If the device you’ve leased is damaged, it is still eligible for an upgrade. However, Klarna will charge an upgrade fee for broken or damaged devices. Apple says it gives you a 14-day grace period between receiving your new device and returning your old one as part of its upgrade program. At the end of your upgrade cycle, you can either return the device to Apple and leave the program, upgrade to a new device, or pay a one-time fee to purchase the device outright. All of this will be facilitated by Klarna and you need to create a Klarna account, of course.