Apple Pay adds Klarna installments now, PayPal balances later

Coinciding with the tenth anniversary of the launch of Apple Pay, the mobile payments platform is gaining more features that involve other services. The changes will give shoppers more ways to buy items, while also managing their finances.

The first and immediate change is support for Klarna for online and in-app purchases. Rolling out on Thursday, consumers in the United States and the United Kingdom will be able to access Klarna's flexible payment options at the time of checking out.

Purchases on an iPhone or iPad running on iOS 18 or iPadOS 18 or later will see options including to pay later in three or four installments. The payments will be offered with no interest, or for longer periods with APRs starting from 0%.

While the initial rollout will work in the US and UK, an expansion into Canada is also anticipated within months.

"We're excited to give users in the U.S. and U.K. more choice in how they pay with the addition of Klarna's flexible payment options right at checkout on Apple Pay," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. "With this rollout, users have the option to pay for purchases over time, and they get to enjoy the seamless and secure experience of Apple Pay that they already know and love."

Apple's other online payments announcement involved the long-standing PayPal. As part of that change, consumers in the United States will be able to see their PayPal balance within the Apple Wallet.

This will be a feature available when linking the PayPad debit card with their Apple Wallet. Apple says that it will give users "greater visibility and confidence when shopping."

PayPal officially enabled Apple Pay and Apple Wallet support in the U.S. for its cards in October 2023.