Even Credit Checks and Payment Processing would be Handled by Apple.
Apple is renowned for keeping things in-house whenever possible, and this might include banking services as well. According to Bloomberg sources, Apple is building the framework for “future financial services” as part of a multi-year drive to bring more financial procedures under its wing. According to reports, Apple is working on its own payment processing system, as well as credit checks, risk assessments for loans, and other behind-the-scenes chores.
Apple Pay Later, a program that enables you pay for products in either four interest-free instalments or monthly instalments with interest, is rumored to be the first product to rely on payment processing.
Apple has already declined to comment on the matter. However, this isn’t the first time the corporation has been accused of mixing up its business strategies in recent weeks. Apple was also rumored to be working on a hardware subscription service, where you would pay a monthly charge to utilize the latest devices, according to a previous rumor.
The increased duty could be difficult to handle. According to Bloomberg, Apple has “met some roadblocks” in creating payment processing technology. The corporation, on the other hand, has a number of motivations to gain more control over financial services.
It may roll out new features more quickly and in countries where they wouldn’t be feasible otherwise. In other circumstances, Apple may additionally receive a larger cut of the money. Simply put, unlike some of its competitors, Apple may not be held down by payment processors and banks.
Apple is working on payment processing infrastructure and technology, including lending risk assessment, fraud analysis, credit checks, and dispute resolution, as well as tools for calculating interest, rewards, approving transactions, reporting data to credit bureaus, increasing credit limits, and more. Internally, a portion of this project is dubbed “Breakout” since it would see Apple abandon its current banking infrastructure.
Apple now partners with Goldman Sachs Bank and CoreCard for the Apple Card, Green Dot for Apple Cash, and Citizens Bank for the iPhone Upgrade Program, but according to Bloomberg, Apple’s financial services efforts will be focused on future products rather than existing ones.
Apple Pay and Apple Card are already available, and the company is working on a future subscription service for hardware as well as a “buy now, pay later” option for Apple Pay purchases.