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Earlier this month Verizon positively commented on the idea of T-Mobile’s “uncarrier” initiative. Shortly after, a leaked document hit the net suggesting Big Red might be planning a similar option. Now it’s official. Starting today Verizon customers can purchase a device for full price without contract and spread that payment out over time.

Unlike T-Mobile’s approach, Verizon doesn’t seek to end contracts altogether. Those who want a subsidized handset will still sign the same old 2-year contract. Those looking for less commitment will have the option to go with a no-contract plan and buy a device through an installment plan that is spread out over 12 monthly payments.

As you’d expect, there are a few catches here. First, there will be a finance charge of $24, which comes to $2 per monthly installment. Additionally, Verizon’s device payment plan is only for tablets or smartphones with a minimum cost of $349.99.

Verizon also makes it clear that not everyone will qualify for this plan, as it will be subject to credit approval and other unspecified terms.

Is Verizon’s new payment option a good deal? Depends on who you ask. If you are a Verizon customer with unlimited data, it might be. Verizon has confirmed that the Device Payment Plan option will work for these customers. Additionally if you are the kind of person that buys a new phone every year, this could be what you are looking for.

Unfortunately – though not surprisingly – Verizon didn’t mention any price-reduced plans to go along with the contract-free option. Instead they mention that device payment plan customers can take advantage of Share Everything pricing and data sharing.

What do you think of Verizon’s new device payment option, interested or not?

Andrew Grush
Andrew is one of the three Managing Editors of Android Authority, primarily responsible for the overseeing of US team of writers, in addition to several other projects such as VR Source and more. He loves tech, gaming, his family, and good conversations with like-minded folks.
  • Oli72

    really a fee for finance wow.

    • Nick

      ….wait, you aren’t actually complaining that they want to charge you a fee for the convenience of not paying it all up front? What do you expect. I think this a nice step forward for Big Red.

  • catt3911

    Yea, this sucks. Verizon just makes it worst on themselves, Love Sprint.

  • Jean Rivera

    I think is a good options for people with unlimited data like me.

  • Ron G.

    So for all you who are on unlimited data, how much data do you actually use? How much would it cost you to be on one of their share plans (assuming you use an amount that fits in one)? Would this cost more than paying twice as much for your devices? That’s what you’re doing if you use this payment plan!

  • RaptorOO7

    Remember that you will be out of contract so Verizon has the right to cancel their unlimited data plans on those who are out of contract. Double edged sword.

  • Mike A

    So they are gonna make people (with new plans) pay for their phone twice. These guys suck.

  • Open Your Eyes

    As always, be careful what you ask for! They have PhD’s working the customer statistics and generating these numbers to be sure it’ll still cost you the same (or more) in the end.

  • just so I have this straight, the price of the phone is already built into your bill and now on top of that they want you to pay for the phone over the course of a 12 month period. So you are in fact paying twice