New Delhi, July 23 -- CUPERTINO - Klarna's shares jumped 9 percent on Tuesday after Apple announced the two companies are partnering to launch Apple Upgrade, a device leasing program that will replace the tech giant's 11-year installment payment arrangement when it goes live in the United States on July 28.

The initiative will allow customers to lease iPhones, iPads, Macs and Apple Watches through 36-month terms, with monthly payments and a buyout option at the end of contract. Bloomberg reported the program's existence on Monday, citing people familiar with the arrangement. Budget and entry-level models will be excluded at launch, those people said.

Apple's previous financing option, an interest-free installment plan tied to Apple Card...