Apple Tests iPhone App Lock for Missed Payments

Apple is preparing Apple Upgrade, a U.S. device-leasing program backed by Klarna Group that is designed to lower monthly payments on most iPhone, iPad, Mac and Apple Watch models. The service would function more like a subscription than a conventional installment loan, giving customers options to upgrade early, pay off the device or return it. It could replace new enrollments in Apple’s iPhone Upgrade Program and standard financing, making payment enforcement central to the sales model.

Code found by 9to5Mac in the iOS 27 beta on July 21, 2026, describes “App Managed Features,” which lets an authorized finance-provider app check contract status and place an iPhone in “Restricted Mode” after missed payments. Most apps could be blocked, while Phone, Wallet, Health, Settings and other allowlisted services remain available. A “Partner Finance Lock” would survive an erase or restore and deter resale. Apple Upgrade is reported to launch July 28 with 24-month iPhone leases; pricing and any fixed missed-payment threshold have not been disclosed.