For years, “buy now, pay later” with Apple Pay only worked when you were shopping online or inside an app. With iOS 26, that changes: you can now split an in-person, tap-to-pay purchase into installments right at the register. Apple has stepped back from running its own lending (Apple Pay Later shut down in 2024) and instead plugged third-party providers directly into Apple Wallet.
In the U.S., the in-store installment lineup includes Affirm, Klarna, Synchrony, Cash App Afterpay, and U.S. Bank. Here’s exactly how the feature works, who can use it, and how to switch it on before your next checkout.
What’s actually new in iOS 26
Paying with installments through Apple Pay is not brand new — it has been available for online and in-app purchases on iPhones running iOS 18 or later. The headline change announced by Apple in June 2025 and rolled out that fall is that this now extends to physical, in-store checkout using the same contactless tap you already use.
The catch: in-store installments require iOS 26 or later. If your iPhone is on iOS 18, you can still use pay-over-time online, but the register won’t show you a “Pay Later” option until you update.
The providers and what they offer
Each provider sets its own terms, approval rules, and fees — Apple is simply the pipe that connects them to Wallet. Here’s a snapshot of the main U.S. options tied to this topic:
| Provider | Typical plan | Interest / cost |
|---|---|---|
| Affirm | Biweekly or monthly payments on eligible purchases | 0% to 36% APR, depending on the plan and your approval |
| Klarna | Pay in 4 · Pay Later (within 30 days) · Financing for larger buys | Pay in 4 and 30-day options are interest-free; financing carries interest |
| Cash App Afterpay | Split into 4 payments over time | Interest-free when paid on schedule; late fees may apply |
| Synchrony | Installments on eligible Synchrony-issued cards | Set by your specific Synchrony card agreement |
A worth-knowing nuance: Affirm and Klarna plans are financed directly by those providers, while Synchrony (and U.S. Bank) surface installment offers that are attached to cards you already hold. In other words, some options are a new line of credit; others just re-slice a purchase on an existing card. Synchrony and U.S. Bank are also the first to support redeeming card rewards at in-store Apple Pay checkout.
Who qualifies
There’s no single “approved” switch. Eligibility is decided by each provider or card issuer, not by Apple. In general you’ll need:
- An iPhone running iOS 26 or later with Apple Pay already set up.
- A U.S. Apple Account and a U.S. location (this rollout is U.S.-only for now).
- An account with the provider — for example, an approved Affirm, Klarna, or Cash App Afterpay account, or an eligible Synchrony card added to Wallet.
- To pass the provider’s own approval. Affirm and Klarna run real-time checks, and some plans may involve a credit inquiry.
Because these are genuine credit products, your loan activity can be reported to credit bureaus, which means on-time payments may help and missed payments may hurt your score. Dollar limits, which purchases qualify, and the exact APR you’re offered all vary by provider and by your individual profile.
How to turn it on
Setup happens inside the Wallet app before you ever reach a register. You’re essentially adding a pay-over-time method the same way you’d add a card.
- Open the Wallet app on your iPhone.
- Tap the + (plus) button in the top corner.
- Select Pay Later Options (sometimes shown as pay-over-time or installment options).
- Choose a provider — Affirm, Klarna, Cash App Afterpay, or an eligible card issuer like Synchrony.
- Follow the prompts to sign in or create an account and complete any approval the provider requires.
Once a provider is linked, it becomes a selectable option at checkout. You can add more than one, so you might keep Klarna’s Pay in 4 for small buys and Affirm for a bigger-ticket item.
Paying in installments at the register
With a provider set up, the in-store flow mirrors a normal Apple Pay tap, with one extra step:
- Double-click the side button to bring up Apple Pay.
- Tap the card or provider you want to use.
- If the purchase is eligible, tap Pay Later.
- Choose Choose a Plan, then either enter your expected purchase amount or pick Set Up After Purchase to finalize the plan afterward.
- Authenticate with Face ID or Touch ID.
- Hold your iPhone near the card reader until the transaction completes.
A worked example
Say you’re buying a $240 pair of headphones in a store. You double-click, pick Klarna, and choose Pay in 4. Klarna splits it into four interest-free payments of $60 — roughly $60 due today and the rest every two weeks, with no interest if you pay on schedule.
Now picture a $1,200 purchase where you’d rather spread it out. You select Affirm and are offered a 12-month plan. At a 15% APR, you’d pay about $108 per month — around $96 in total interest over the year. Had you qualified for a 0% APR promotional plan instead, that same $1,200 would be four payments of $300 with no added cost. The lesson: the plan you’re offered, not just the provider, decides what it costs you.
Frequently Asked Questions
Do I need iOS 26, or will iOS 18 work?
For in-store tap-to-pay installments, you need iOS 26 or later. iOS 18 only supports pay-over-time for online and in-app purchases. If you don’t see a Pay Later option at a register, check that your iPhone is updated under Settings > General > Software Update.
Is this the same as the old Apple Pay Later?
No. Apple shut down its in-house Apple Pay Later loans in 2024. The current feature hands the lending to third parties — Affirm, Klarna, Synchrony, Cash App Afterpay, and U.S. Bank — so the terms, approval, and customer service come from those companies, not Apple.
Will using it affect my credit score?
It can. These are real credit products, so some plans involve a credit check at approval, and your repayment activity may be reported to credit bureaus. Paying on time can help; missing payments can hurt. Always review the provider’s terms before committing.
Are there fees or interest?
It depends entirely on the provider and plan. Klarna’s Pay in 4 and 30-day options and Cash App Afterpay’s 4-payment split are interest-free when paid on schedule, though late fees can apply. Affirm ranges from 0% to 36% APR, and Synchrony installments follow your card agreement. Apple itself adds no fee.
The bottom line
iOS 26 finally brings Apple Pay’s installment options out of the browser and into physical stores, with Affirm, Klarna, Synchrony, and Cash App Afterpay leading the U.S. rollout. The feature is genuinely convenient — set it up once in Wallet and splitting a purchase is just a tap and a Face ID scan away. Just remember that “convenient” and “free” aren’t the same thing: read each plan’s terms, watch the APR, and only borrow what you can comfortably repay.
WalletWisp is for informational purposes only and does not provide financial advice. Verify current terms with each provider before making a decision.
