To gradually reduce its reliance on outside partners, Apple is reportedly working on its own payment processing service for future financial products. The multiyear plan, internally called the “Breakout”, is designed to bring a “wide range” of financial tasks in-house for future products like payment processing, credit checks, fraud analysis, risk assessment for lending, and others. People familiar with the projects told Bloomberg that Apple’s new financial service wil also cover customer-service tasks like managing disputes.
The tech company’s major financial partners are CoreCard Corp., Green Dot Corp., and Goldman Sachs Group Inc. looking over the aforementioned financial tasks. Thus, the in-house payment processing technology and infrastructure will not only reduce Apple’s dependence on partners but will also become another source of revenue.
Apple’s new payment processing system would turn it into a “bigger force” in financial services
Currently, the tech giant offers financial services like Apple Card, Apple Pay, Tap to Pay, Wallet app, and Apple Cash. It is also alleged that the Cupertino tech giant is developing a new hardware subscription plan which will offer consumers pocket-friendly monthly payment plans to upgrade their devices easily and a “buy now, pay later” payment service.
Therefore, the alleged “Breakout” financial service is expected to be successful because of the company’s payment service “Apple Pay”. The report also predicts that the new project is like to turn the Cupertino tech giant into a “bigger force” in the financial services market by allowing it to expand future financial services to more regions and will become a new source of revenue for the company.
Apple’s project represents its biggest foray yet into the world of finance, and it may not be an easy task. But Apple has a head start in the form of its payment service.
Financial services help keep users glued to their iPhones and generate revenue from interest and transaction fees. That’s why the company wants greater control over the process, letting it roll out new options more quickly and potentially collect more revenue.
Having said that, the report also notes that alledged financial service is years away and even when it releases, Apple is unlikely to drop its financial partners.