Apple will remotely block iPhones over overdue payments

A new mechanism has been discovered in the beta version of iOS 27 that will allow Apple and financial partners to restrict iPhone functionality if a user stops making payments under a leasing or financing agreement. The discovery was made by 9to5Mac researchers while analysing the operating system’s code. The feature has not yet been officially announced, but its appearance coincides with rumours about the launch of a new Apple Upgrade programme, which will allow users to take the company’s devices on long-term leases with monthly payments.

What exactly was discovered in iOS 27

A new App Managed Features mechanism was found in the system code. It allows a bank or financial institution’s app to register a device and regularly check the status of an agreement. If a customer violates the payment terms, the iPhone may automatically switch to a special Restricted Mode («Restricted Mode»).

Once the mode is activated, most apps will become unavailable.

Only the most important services will continue to work:

- Phone;

- Settings;

- Wallet;

- App Store;

- Health;

- Passwords;

- Clock;

- Magnifier;

- accessibility features.

In addition, the code indicates that some apps related to security or critical notifications, such as Messages or medical services, may also remain available, although the financial partner will be able to make that decision.

Subscriptions will continue to be charged

One of the most controversial features of the new system is that the restrictions do not affect App Store subscriptions.

If a user pays for cloud storage, a music service or a professional subscription-based app, the money will continue to be charged automatically even if access to the app itself is blocked because of overdue payments. In the current implementation of iOS 27, the mechanism does not provide for the automatic suspension of such subscriptions.

You will not be able to sell or reset the iPhone either

A new type of activation lock, Partner Finance Lock, was also found in the code.

Its purpose is to prevent the owner from getting rid of the device until all financial obligations have been fulfilled. Even after a full settings reset or firmware restoration, the lock should remain in place, making it significantly more difficult to resell the device or attempt to dismantle it for parts. The system is integrated with the Find My service, but according to the available information, financial organisations will not gain access to the user’s location data.

When will the blocking occur

Interestingly, the code does not specify a fixed number of missed payments.

The decision to switch the device to restricted mode will be made directly by the financial partner — a bank or a company providing instalment financing or leasing. This means that the terms may vary depending on the specific agreement.

Why Apple is introducing such a system

The appearance of the new feature is directly linked to preparations for the Apple Upgrade programme.

According to Bloomberg and information found in iOS 27, Apple may abandon the traditional device-purchase model in favour of a scheme resembling car leasing. The user will pay a smaller amount each month and, at the end of the term, will be able to buy the device outright, return it or exchange it for a new model. The financing is expected to be provided jointly with Klarna.

For Apple, such a scheme reduces financial risks, as the company gains a tool for remotely controlling devices on which payments have stopped.

What this means for users

Experts note that similar practices have long been used by mobile operators and financial organisations on Android devices in a number of countries. For Apple, however, this would become one of the strictest mechanisms for controlling devices purchased through a financing programme.

It is important to understand that this currently refers exclusively to code discovered in the beta version of iOS 27. Apple has not officially introduced the feature, and its operation and terms of use may change before the final release of the operating system. In addition, the proposed mechanism applies to devices obtained through financing or leasing programmes, not to iPhones fully paid for by their owners.