Apple has confirmed it will not activate any ‘restricted mode’ on devices leased through its new Upgrade program if users miss a payment. In an emailed statement to The Verge, the company clarified that no limitations would be imposed on device functionality due to missed payments or default within the programme.

The revelation comes after 9to5Mac uncovered code in iOS 27 beta for a ‘new App Managed Features’ system, which reportedly allowed financial partners such as Klarna to perform ongoing status checks and potentially put devices into Restricted Mode if owners were not in good standing. However, Apple’s spokesperson Brian Bumbery stated that these features would not be used under the Upgrade program.

‘There will be no limitations put on device functionality due to missed payments,’ he said. This means users can continue to use their iPhone, iPad, Mac or Apple Watch as they normally would, regardless of whether they have paid their monthly instalments on time.

The absence of such restrictions is a significant departure from the potential scenario where users might lose access to most apps unless they pay up. Instead, Klarna will simply terminate the lease agreement and require customers to settle the outstanding balance if they miss three payments in a row, as confirmed by Clare Nordstrom, Klarna’s spokesperson.