Apple joins the dance – Companies

For the first time, the firm at the apple engages in a financial service without relying on a banking partner. Not sure, however, that this is an underlying trend.

The Gafa have been flirting directly or indirectly with the financial sector for several years. Until now, due to the very heavy regulation that reigns in the sector, incursions have always relied on a solid banking partner. Like the payment cards that Apple, via Apple Pay, had launched with Goldman Sachs. This time, however, the…

The Gafa have been flirting directly or indirectly with the financial sector for several years. Until now, due to the very heavy regulation that reigns in the sector, incursions have always relied on a solid banking partner. Like the payment cards that Apple, via Apple Pay, had launched with Goldman Sachs. This time, however, the apple firm is going solo. By the end of the year and first in the United States, it will enter the arena of split payment, a market which has exploded during the pandemic and is held mainly by start-ups like Klarna or Affirm. Despite the slowdown in the sector (stabilization of e-commerce, inflation, threats to repayment capacity, increased interest from regulators for this method of payment, etc.), Apple is determined to make Apple Pay Later a real hit. This is indeed the name of the product that it will launch in collaboration with Credit Kudos, a British start-up specializing in credit analysis that it recently acquired. Concretely, the solution directly integrated into Apple Pay will allow “validated” consumers to pay for their purchase in four installments over a maximum period of six weeks. It is Apple Financing, a subsidiary created for the occasion and approved, which will manage the payments and the risk via the Mastercard network. No banking partner, therefore, for this activity which until now escapes, given the amounts and the duration of the credit, the regulators of the whole world. However, Apple does not seem to want to make this trend a long-term strategy at this stage. It is rumored that it will soon launch another split payment formula, called Apple Pay Monthly. A solution that should appeal to banking partners.

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