O2 now lets UK customers buy a new or refurbished smartphone on finance without taking an O2 airtime plan. Until now, O2 only offered phone financing alongside an airtime plan. Affirm provides the credit, repayment terms run from 3 to 24 months, and APR starts at 0% depending on a credit check. For SIM-only users, this means you can keep a cheaper SIM-only deal from any network and still spread the cost of an O2 phone.
What O2 announced
Virgin Media O2 announced the launch on 29 October 2026 in a press release. ISPreview reported it the same day. Both sources say O2 previously offered financing only with an airtime plan. The new option separates the phone purchase from the mobile contract.
To use it, you choose “Pay over time with Affirm” at checkout and complete a short application. Approved applicants then see personalised repayment options. After purchase, you track your balance, manage payments and get support in the Affirm app.
Amber Pine, O2’s Chief Consumer Officer, said the company wants to give people “the freedom to choose.”
Key terms
According to O2’s announcement:
- Lender: Affirm UK Limited. Telefónica UK Limited (O2) is a credit broker, not a lender, and introduces customers only to Affirm.
- Term length: 3 to 24 months.
- APR: From 0%, subject to a credit check.
- Representative example: A £900 purchase over 24 months costs £46.64 a month, £1,119.29 in total. The fixed interest rate and representative APR are both 22%.
- Down payment: May be required.
- Fees: No hidden fees and no late payment charges.
- Early repayment: Allowed with no penalty.
- Credit check: O2 says Affirm’s soft credit check does not affect your credit score if you aren’t eligible.
The representative example shows that 0% APR is not guaranteed. Depending on your credit profile and the term you pick, you could pay a meaningful amount of interest. Check the APR and total amount payable on your offer before you accept.
Who can apply
Both new and existing O2 customers can apply. Affirm requires applicants to be UK residents aged 18 or over with a bank account or debit card. Approval depends on credit status, and a minimum spend applies.
Which phones are included
O2 listed these launch devices:
- New: iPhone 16 (128GB), Samsung Galaxy A57, Google Pixel 10a
- “Like New” refurbished: iPhone 17 (256GB), Samsung Galaxy S25 Ultra, Samsung Galaxy S26 Ultra
The announcement did not give device prices. Check current pricing on O2’s website.
Background: O2 and Affirm
In February 2026, Affirm and Virgin Media O2 announced a partnership to bring pay-over-time financing to O2 customers. Coverage at the time described it as a way for O2 to expand into the SIM-free device market, alongside its existing Pay Monthly handset bundles and SIM-only plans. This launch puts that partnership to work for phones bought without an airtime plan.
What it means for SIM-only users
Many UK users already split phone and airtime: they buy a handset outright or through a third-party lender, then pair it with a low-cost SIM-only plan from an MVNO. O2’s new option makes that approach possible directly from a network operator, without committing to that operator’s airtime.
Compare the total cost before you decide. Add the total financed cost of the phone (including any interest and down payment) to the cost of your chosen SIM-only plan over the same period. Then compare that figure with an equivalent bundled handset contract. If you get 0% APR, splitting may work out cheaper. If you’re offered an APR like the 22% in O2’s example, a bundle or buying outright may be better value.
Since the phones are bought without an airtime plan, they should suit SIM-only deals on other networks. Before buying, confirm the specific device supports the network and features you need, such as eSIM and 5G bands.