If you tap your iPhone to pay at a store register and suddenly see a “Pay Later” prompt under your card, you’re looking at Apple Pay’s in-store installment feature. It first arrived with iOS 26 and carries into iOS 27, letting your bank or a partner lender offer to split a purchase into monthly payments right at checkout. Here’s exactly what it is, how to use it, and how to make the offers disappear if you’d rather not see them.
What this feature actually is
Apple Pay has supported installment plans online and in apps since iOS 18. What changed more recently is location: starting with iOS 26 (and continuing in iOS 27), you can also apply for and use these plans in a physical store when you tap to pay. The plans themselves are not from Apple. Apple retired its own “Apple Pay Later” product; today the offers come from your card issuer or from a participating installment provider.
In the United States, offers can come from participating banks and from installment providers Affirm, Citi, Klarna, and Synchrony. Whether you see an offer depends on your specific card, the amount, and the lender’s eligibility rules — so not every card, and not every purchase, will show one.
| Detail | What to know |
|---|---|
| Where it works | Online, in apps (iOS 18+) and in store (iOS 26 or later, including iOS 27) |
| US providers | Affirm, Citi, Klarna, Synchrony, plus participating banks/card issuers |
| Who sets the terms | The card issuer or installment provider — not Apple |
| Approval | Subject to the lender’s eligibility check and approval; some require an application |
| Not eligible | Often excludes subscriptions and recurring transactions, and some purchase types |
| Authentication | Confirm with Face ID, Touch ID, or your passcode |
How to use an installment offer in store
The flow is deliberately quick — it happens inside the standard tap-to-pay screen.
- Double-click the side button (or Home button) to bring up Apple Pay, or hold your iPhone near the reader.
- Select the card you want to pay with. If an installment option is available for that card and amount, a Pay Later hint appears below it.
- Tap the Pay Later option to see the available plans (for example, a set number of monthly payments).
- If the lender requires it, complete a short application. Approval is decided by the provider, not Apple.
- Once approved and you pick a plan, a payment card for that plan is added to your Wallet to complete the purchase.
- Confirm with Face ID, Touch ID, or your passcode, then hold your iPhone to the reader.
You can also set things up before you shop: open the Wallet app, tap the + button, and browse supported installment providers to create an account in advance. Doing this ahead of time means fewer taps at the register.
A worked example
Say you’re buying a $600 pair of noise-canceling headphones. You tap to pay with an eligible card and see a Pay Later hint. You open it and the provider offers a plan of 4 payments of $150, or 12 monthly payments with interest. If you choose the 4-payment plan, roughly $150 is due now and the rest is spread over the following weeks; a plan card is added to Wallet so you can track and pay it. If you choose a 12-month plan, the provider discloses the APR and total cost before you agree — read that screen carefully, because a longer plan usually means paying more than the sticker price.
What it costs
There’s no single fee, because each lender sets its own terms. Some short “pay-in-4” style plans from providers like Affirm or Klarna are offered at 0% APR, while longer plans — and installment plans tied to a Citi or Synchrony credit card — typically carry interest at the provider’s APR, based on your creditworthiness. Missing a payment can trigger late fees or interest depending on the lender. Because the terms are always disclosed on-screen before you commit, treat that confirmation page as the real “price tag,” not the store shelf.
How to hide or turn off the installment offers
If you find the Pay Later prompts distracting — or you simply don’t want the temptation at checkout — you can switch them off. The controls live in your Apple Pay defaults.
- Open the Settings app.
- Tap Wallet & Apple Pay.
- Tap Apple Pay Defaults.
- Turn off the toggles for Pay Later, Offers, and Other Pay Later Options (names may vary slightly by region and iOS version).
With those switched off, your regular cards still work exactly as before — you just won’t see the installment hints beneath them at checkout. You can flip the toggles back on at any time. Turning the offers off in Settings does not close any plan you’ve already opened; you manage existing plans through the provider (and, for Apple Card installments, in the Wallet app).
| Goal | Where to go |
|---|---|
| Stop seeing offers at checkout | Settings > Wallet & Apple Pay > Apple Pay Defaults |
| Set up a provider in advance | Wallet app > + button > choose a provider |
| Track or pay an active plan | Wallet app plan card, or the provider’s own app |
Frequently Asked Questions
Does turning off Pay Later delete my cards or accounts?
No. Toggling off Pay Later, Offers, and Other Pay Later Options only hides the installment prompts at checkout. Your debit and credit cards stay in Wallet and continue to work normally, and any installment plan you already opened remains active with its provider.
Why don’t I see an installment offer on my card?
Offers only appear when your specific card issuer or a partner provider supports installments, the purchase qualifies, and you meet the lender’s eligibility rules. Subscriptions and recurring charges are commonly excluded. You also need iOS 26 or later to use installments in a physical store, so make sure your iPhone is up to date.
Is Apple lending me the money?
No. Apple retired its own Apple Pay Later product. Every plan you see is provided by your card issuer or an installment provider such as Affirm, Citi, Klarna, or Synchrony. They handle approval, set the APR and any fees, and collect the payments — Apple simply surfaces the offer inside Apple Pay.
Will using an installment plan affect my credit?
It can. Because the loan or installment plan comes from a third-party lender, it follows that lender’s rules — some run a credit check, and some report the account and your payment history to credit bureaus. Always read the provider’s terms on the confirmation screen before agreeing.
The bottom line
iOS 27 keeps Apple Pay’s in-store installment feature front and center: tap to pay, and eligible cards may offer to split the cost into scheduled payments. Used deliberately — with the APR and total cost read carefully — it can be a convenient way to spread a large purchase. If it’s not for you, three toggles under Apple Pay Defaults make the prompts vanish. Either way, you’re in control.
WalletWisp is an informational resource and does not provide financial advice. Verify current terms, fees, and eligibility directly with your card issuer, the installment provider, or Apple before making a decision.
