Apple adds another buy now pay later service to Pay

Apple Pay will now include Klarna as an option at checkout. The addition of the buy now pay later (BNPL) service comes just months after Apple shut down Pay Later, its own BNPL service launched in 2023.

Klarna lets users purchase products with four interest-free installments. Even though BNPL services like Klarna are rising in popularity, surveys suggest the services may lead to overspending.

Image: Apple

These loans are also harder to track because most aren’t reported to credit bureaus. Earlier this year, the Consumer Financial Protection Bureau issued a rule that classifies BNPL services as credit card providers, requiring them to investigate disputed purchases and provide refunds for returned products.

Alongside Klarna, Apple Pay added the BNPL service Affirm to the app in September. Klarna and Affirm are available through Apple Pay with iOS 18 and iPadOS 18.

There are a few other previously-announced updates that are now coming to Apple Pay as well, including the ability to use the service on third-party desktop browsers like Chrome. Apple is also rolling out its “Tap to Provision” feature that lets you add new cards by tapping them on the back of your iPhone.