On Apple Pay's 10th anniversary, Apple adds support for Klarna in the US and UK and plans to expand installment loan options and add reward redemptions
but it has more work to do José Adorno / BGR : Apple celebrates 10 years of Apple Pay with new features and more payment methods Ben Lovejoy / 9to5Mac : More Apple Pay installment options, and PayPal balance will be visible in Apple Wallet X: Ray Wong / @raywongy : Apple Pay is 10 years old. Apple always plays the ~long~ game LinkedIn: Alex Rohloff : Klarna is now available at checkout on Apple Pay, online and in apps 🚀 — Best in class just got better. … David Sandstrom : HUGE news: Klarna is now available on Apple Pay! — Starting today, users in the US and UK can access Klarna's flexible payment products directly through their iPhones and iPads. … Forums: r/AppleWallet : Klarna and PayPal Integrations Coming to Apple Wallet
Context & Ripple Effects
Apple Pay’s move toward third-party installments follows Apple’s decision to end its own Apple Pay Later service after its 2023 U.S. rollout. The newer approach broadens payment choice inside Wallet rather than relying on a single Apple-operated lending product.
The integration also extends Wallet’s role as a payments hub: PayPal had already moved its debit card and cash-back offer into Apple Wallet through its U.S. point-of-sale push. Klarna and PayPal now gain distribution at the Apple Pay checkout layer.
First-order effects
- Klarna becomes an Apple Pay checkout option for iPhone and iPad users in the U.S. and UK, expanding its reach across online and in-app purchases.
- Apple Pay users gain additional pay-over-time choices, while planned reward redemption and PayPal-balance visibility make Wallet more useful before and during checkout.
Second-order effects
- Installment providers must compete for placement and consumer choice within Apple Pay, where the wallet interface can shape which payment methods are most visible.
- Merchants that already accept Apple Pay can reach Klarna users through the same checkout flow, reducing friction between wallet acceptance and installment-payment availability.
Third-order effects
- Apple is positioning Wallet less as a single payment credential and more as an access layer for financial providers; that can strengthen its influence over customer choice without Apple directly underwriting every product.
- If this partner-led model expands, consumer-finance firms may increasingly compete for wallet distribution and interface prominence, not only merchant integrations and standalone apps.
The trend: Digital wallets are evolving into financial-service marketplaces that aggregate cards, balances, rewards and partner financing at the point of purchase.