You tap your iPhone to pay for groceries or hit “Apple Pay” on a website, and suddenly the payment sheet is offering to split the bill into four payments — or into monthly installments from Affirm or Klarna. If that felt new, it is. Apple has been steadily building “buy now, pay later” (BNPL) offers directly into the Apple Pay sheet, and in the current iOS 27 generation those offers now appear in physical stores, not just online. Here’s what’s actually happening, how the offers work, and exactly how to switch them off if you’d rather not see them.
Why the offers suddenly appeared
Two things changed. First, Apple shut down its own Apple Pay Later product in the U.S. back in 2024 — the in-house loan that let you split purchases up to $1,000 into four interest-free payments. Rather than lend money itself, Apple pivoted to plugging third-party lenders straight into Apple Pay.
Second, Apple kept widening where those partner offers show up:
- Online and in-app installments arrived first, working on iOS 18 and later.
- In-store installments — the ones that surprise people at the register — require iOS 26 or later, which includes the iOS 27 line you’re likely running now. Apple pushed this hard in early 2026 with promotional emails encouraging shoppers to “pay over time in stores as well as in apps and online.”
So the offers aren’t a glitch or a scam. They’re a built-in Apple Pay feature powered by outside lenders. Apple itself isn’t the one lending anymore — it’s routing you to partners.
Who’s actually behind the offers
In the United States, installment options in Apple Pay come from participating banks and BNPL providers. The core partners are:
| Provider | Typical U.S. plan types | Cost |
|---|---|---|
| Klarna | Pay in 4 (biweekly); Pay Later (up to 30 days); Financing (monthly) | Pay in 4 and Pay Later are interest-free; Financing charges interest |
| Affirm | Biweekly or monthly installments | 0% to 36% APR, shown before you commit |
| Citi | Card-linked monthly installment plans | Varies by card/offer |
| Synchrony | Card-linked monthly installment plans | Varies by card/offer |
Availability depends on the card in your Wallet and whether the specific provider is offered at that moment. Some plans need a quick application that’s subject to approval, and larger financing plans may run a credit check.
How to use an installment offer (step by step)
The flow is nearly identical online and in store:
- Choose Apple Pay at checkout (or double-click the side button in store).
- On the payment sheet, tap Other Cards & Pay Later Options (online it may read “Pay Later Options”).
- Any available plans appear under Additional Pay Later options — pick a provider like Affirm or Klarna.
- Review the plan terms, including the number of payments and any APR or interest.
- Complete any short application if prompted, then authenticate with Face ID or Touch ID to confirm.
You can also set up a plan ahead of time: open Wallet, tap the + (or the ••• menu), choose Pay Later Options, and select a provider so it’s ready at your next tap-to-pay.
A worked example: a $600 purchase
Say you’re buying a $600 item and three offers pop up:
- Klarna Pay in 4: $150 today, then $150 every two weeks for three more payments. Interest-free — total paid $600.
- Affirm 0% APR promo (if offered): the amount split into equal monthly payments with no interest — total $600.
- Affirm 15% APR over 12 months: roughly $54/month, for a total of about $650 — meaning you’d pay around $50 in interest for the convenience.
The lesson: the “Pay in 4” and 0% offers can be genuinely free, but interest-bearing financing has a real cost. Always read the APR line before tapping.
How to turn the offers off
There’s no single master switch that removes every installment option from the payment sheet, but you can quiet the promotions and simply ignore the plans when they appear. Here are your options:
| Goal | What to do |
|---|---|
| Stop promotional “Offers & Promotions” notifications | Open Wallet → tap the ••• (ellipsis) top-right → Notifications → toggle Offers & Promotions off |
| Never use the offers | Just keep tapping your normal card — the plans are opt-in and never charge you unless you choose one and authenticate |
| Remove a provider you set up | Open Wallet, select the installment provider card, and remove it |
| Silence a lender’s own alerts | Settings → Notifications → find the provider app (e.g., Affirm, Klarna) → turn notifications off |
The Offers & Promotions toggle was added in iOS 26 and carries into iOS 27. It’s on by default, so you have to turn it off yourself. Note that this controls promotional messaging — the “Pay Later” line may still appear on the sheet as a payment choice, but it will never be used unless you deliberately select it.
Should you use them?
Interest-free “Pay in 4” plans can be a reasonable way to smooth out a big-but-planned purchase, provided you’re confident you’ll make every payment on time. The risks are the usual BNPL traps: late or missed payments can trigger fees, some plans report to credit bureaus, and stacking several plans across different retailers makes it easy to lose track of what you owe. If an offer carries an APR, treat it like any other loan and compare the total cost against paying in full or using a card you already carry.
Frequently Asked Questions
Is Apple lending me the money?
No. Apple discontinued its own Apple Pay Later loans in the U.S. in 2024. Today the installment offers come from third-party providers such as Klarna, Affirm, Citi, and Synchrony. Apple simply displays their offers inside the Apple Pay sheet.
Why am I seeing these in a physical store now?
In-store installment offers require iOS 26 or later. Once your iPhone is on that version — including the iOS 27 line — eligible cards and providers can surface “Pay Later” options right when you tap to pay in person, not just online.
Will choosing an installment plan hurt my credit?
It depends on the provider and plan. Short interest-free “Pay in 4” plans often don’t involve a hard credit pull, but longer financing plans may run a credit check and report your payment history. Missing payments can lead to fees and, in some cases, negative credit reporting. Always read the specific terms shown before you confirm.
Can I completely remove the “Pay Later” line from the payment sheet?
There’s no dedicated switch to hide it entirely, but the offers are strictly opt-in. If you never select one, you’re never charged. You can turn off Offers & Promotions notifications in Wallet and remove any installment provider you’ve set up to keep things minimal.
The bottom line
Those installment offers in Apple Pay aren’t a mistake — they’re Apple’s post-Apple Pay Later strategy of surfacing third-party BNPL lenders at checkout, now extended to in-store tap-to-pay in iOS 26 and 27. Use them when the terms are genuinely interest-free and the timing works for your budget, skip them when there’s an APR you’d rather avoid, and turn off the promo notifications in Wallet if you’d rather not be nudged. Either way, nothing is charged unless you choose a plan and confirm with Face ID or Touch ID.
WalletWisp is an informational resource, not financial advice. Verify current terms, fees, and eligibility with your provider before making a decision.
