Apple has developed a plan to create an individual financial infrastructure for payment and lending purposes.
Apple plans to develop its own internal technology for various financial services for those users breaking out from the existing establishment players. A new payment system called Breakout will be introduced to take on existing financial institutions.
Apple has always believed that monitoring user experience provides the dual benefit of better customer experiences and a larger revenue stream for Apple. The company has complete control of their production process, which means they are less susceptible to failures from outside partners.
They have been applying their philosophy of good design of financial services in order to give people more options when they want or need them. Bloomberg’s sources report that the plans include risk assessment and payment processing for fraud analysis, lending, and credit checks.
The company’s plan
According to the sources, Apple’s decision to bring all the components in-house is aimed at future products rather than current ones. As a result, Apple Card might continue to use Goldman Sachs.
In some scenarios, such as the company’s ‘Apple Pay Later’ feature, it may, at least initially, rely on partners for some features, such as longstanding loans besides using their own infrastructure and technology for the short-term ones.
Apple Pay Later has been recognized as a feature through which these fresh plans will most likely relate. Apple is also working on other latest financial products, such as a monthly subscription bundle for Apple and other Apple services.
Key takeaways
Apple’s rising emphasis on various financial services redirects its struggle to evolve from somewhat the ‘hit-based’ corporate products, such as the latest iPhone or any product that can help generate enormous demands, some outside of Apple’s control, to a more consistent revenue from customers.
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