Apple in Fintech (Apple Card, Apple Pay Later, Open Banking etc…)

They’re already 90% of the way there.

I’d beg to differ on 90%. Only authorised for broking / intermediary services today. Lending money would require a great deal of regulatory work (and risk appetite / capital). Ask Revolut.

The financial services arms of car manufacturers are a better comparison than Revolut.

They don’t actually need to be a literal regulated bank to offer the sorts of financial services they want to offer (but they sure enough have the capital for it if they wanted to). And given the amount of startups popping up, offering exactly the same sort of services, particularly on this side of the pond, I’d say it’s very trivial.

Apple’s U.K. open banking services are entirely in house. Apple Pay later lending is almost entirely in house under their new subsidiary (just like car manufacturer financing is). Including the crucial lending part that “would require a great deal of regulatory work”. And they want to go further.

Apple Pay Later is offered by Apple Financing LLC, a subsidiary of Apple Inc., which is responsible for credit assessment and lending. Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall,5 so they are reflected in users’ overall financial profiles and can help promote responsible lending for both the lender and the borrower.

Goldman Sachs is only there as the payment credential issuer now.

This lines up with what I’ve been told.

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