Apple is reportedly preparing to launch a new hardware leasing program called Apple Upgrade, marking one of the company’s biggest changes to how it sells devices. The service, expected to launch on July 28, would allow customers to lease eligible iPhones, iPads, Macs, and Apple Watches through monthly payments rather than purchasing them outright. The program is reportedly being backed by Klarna and will require only a soft credit check.

The program is designed to work much like a car lease or subscription. Customers will have the flexibility to pay off the device early, upgrade to a newer model before the lease ends, keep the device after completing the term, or simply return it at expiration. iPhone and Apple Watch leases are expected…