[UPDATE] XBOX May Soon Offer Buy Now, Pay Later Option

[UPDATE: June 16, 2026 | 04:28AM UTC] Following the report, we looked for some traces of the new payment option and fortunately found them.

Image credit: Microsoft | Screenshot by Rishaj

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The next big change coming to Xbox might not involve new hardware or another subscription tier. Recently spotted backend code references hints that Microsoft could be preparing to launch a new buy now, pay later options for Xbox purchases, potentially giving players more ways to spread the cost of games, add-ons, and even hardware over time.

XBOX appears to be testing flexible payment options

The alleged payment option comes from X user redphx, who spotted new payment-related strings on the Xbox website that reference installment plans through PayPal and Klarna (via Gameranx). According to the backend descriptions, PayPal users could be offered two financing options. Eligible purchases may be split into four interest-free payments every two weeks or spread across monthly installments for up to 24 months.

Klarna integration appears to follow a different structure. Players would pay the first installment at checkout, followed by two additional payments every 30 days.

Just to be clear, Microsoft hasn’t officially announced the feature, so it remains unclear which regions, products, or price thresholds could support these payment plans. The timing, however, is notable.

Just last week, Xbox CEO spoke openly about exploring radically different business models as rising hardware costs continue to reshape the gaming industry. Xbox CEO Asha Sharma recently described growing memory and storage prices as a challenge affecting the entire console business and said the company will need to innvoate to bring down the cost of Project Helix in the affordable territory for players.

If these payment options eventually roll out, they could lower the barrier to entry for players purchasing expensive games, accessories, or future Xbox hardware. For now, though, it’s worth treating the discovery with caution. Backend features often change before launch, and some never make it to the public at all.

In other related news, XBOX Games Studio lead and Chief of staff have stepped down. Meanwhile another report suggests that XBOX is planning to shutter Compulsion Games, though the leadership of the studio is reportedly negotiating with the company.