Code found in iOS 27 beta shows that if a user on the forthcoming Apple Upgrade program misses a payment, Apple can restrict their iPhone usage. The Wallet app may be one of the few apps that remain available in this scenario.

Apple is set to launch a financing option that replaces the previous iPhone Upgrade Program. It lets buyers spread the cost of most Apple devices, easing the sales hit Apple expects from rising prices. The company is partnering with Klarna over the payment program.

There are risks for Apple, as users can default on payments, a problem that has already occurred with Apple Card. To mitigate this, iOS 27 includes a "Restricted Mode" that limits access to only essential apps and a "Partner Finance Lock" that prevents erasing, reselling or stripping the iPhone for parts.

In 2024, JP Morgan Chase negotiations revealed unpaid balances of $17B on Apple Card, leading Goldman Sachs to pull out of the program.