Apple reportedly plans to launch a Klarna-backed financing program next week that will let you pay off an iPhone, iPad, Mac, or Apple Watch in monthly installments over two to three years. While Apple hasn’t shared any details about the rumored “Apple Upgrade” program yet, code spotted in an iOS 27 beta release suggests the company has already built a system to deal with customers who fall behind on payments.
A built-in switch lenders can flip to lock most apps
According to 9to5Mac, iOS 27 includes a new framework called App Managed Features, which hands an approved lending app the ability to monitor whether a customer has been keeping up with payments. If they miss enough installments, the lender can put their iPhone in Restricted Mode, which blocks access to all but nine apps.
Phone, Settings, Wallet, Clock, Health, Passwords, Magnifier, Accessibility Reader, and the App Store will reportedly continue to work. Subscriptions tied to any blocked apps will also keep running, since Restricted Mode doesn’t appear to touch App Store billing. That means someone locked out of an app will be charged even if they can’t use the subscriptions.
A second layer called Partner Finance Lock will close off the obvious workarounds, preventing users from disabling Restricted Mode with a factory reset, selling a restricted device, or stripping it for parts.
The lender sets the rules, not Apple
Messages, Home, and other apps that send critical alerts may stay available during a lockout. That call reportedly sits with the lender, so the exceptions a user gets could depend on who financed the phone.
The code also sets no threshold for how many missed payments trigger a lockout, suggesting that financing partners will decide those terms as well. If that’s the case, the agreement a customer signs will be the only place to learn how much wiggle room they get.
None of this is confirmed, and Apple could make further changes before the system rolls out with iOS 27 later this year. It’s also unclear whether the same system will reach financed iPads, Macs, or Apple Watches.
