Apple is Reportedly Developing its own Payment Processing Technology and Infrastructure for Future Products
It's being reported today that 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.
A multiyear plan would bring a wide range of financial tasks in-house. That includes payment processing, risk assessment for lending, fraud analysis, credit checks and additional customer-service functions such as the handling of disputes.
The effort is focused on future products, rather than Apple’s current lineup of services. Still, the news sent shares of CoreCard Corp. and Green Dot Corp. -- two of Apple’s existing partners -- down more than 10% apiece on Wednesday. Goldman Sachs Group Inc., another key partner, slipped as much as 1.2%.
The push would turn the company into a bigger force in financial services. Apple is working on its own subscription service for hardware and a “buy now, pay later” feature for Apple Pay transactions, reports Mark Gurman.
Part of the project has been dubbed “Breakout” internally, underscoring the idea of breaking away from the existing financial system. Last week, Apple acquired U.K.-based startup Credit Kudos Ltd., which uses bank data to make lending decisions. The company will likely tap that technology to help build its own infrastructure. For more on this, read the full Bloomberg report.
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