What you need to know
- Apple is working to bring much of its financial footprint in-house.
- The company is working on a payment processing technology that would cut its reliance on existing partners.
- Future financial products could include lending, fraud analysis, and credit checks.
Apple's next big game might be in the world of financial services rather than the metaverse.
According to a new report from Bloomberg, the company is working to bring a number of financial services products in house. The effort, called project "Breakout," sounds like it could start with Apple building out the ability to handle its own payment processing.
Going forward, the project could result in a ton of additional financial service products, including "payment processing, risk assessment for lending, fraud analysis, credit checks and additional customer-service functions such as the handling of disputes."
Apple Inc. is developing its own payment processing technology and infrastructure for future financial products, part of an ambitious effort that would reduce its reliance on outside partners over time, according to people with knowledge of the matter.A multiyear plan would bring a wide range of financial tasks in-house, said the people, who asked not to be identified because the plans aren't public. That includes payment processing, risk assessment for lending, fraud analysis, credit checks and additional customer-service functions such as the handling of disputes.
Shares for a number of financial service firms that are currently partnered with Apple slid on Wednesday on the news. If true, such an effort would remove the company's reliance on a number of partners and boost Apple's ability to offer more financial service products to its customers directly.
The company currently offers Apple Cash and Apple Card, as well as some financing options for its products with carrier and credit partners. Goldman Sachs is the company's current partner for Apple Card, but such moves could eventually make it that Apple could offer the credit card on its own.
It's not hard to think that there is a future where Apple will offer checking accounts, savings accounts, and even investments. The company is always looking to disrupt industries, and the financial services industry is ripe for disruption.
