Apple begins its fintech offensive

As part of the diversification of its activities towards services, Apple relies heavily on financial services. Since 2014, Apple has offered the Apple Pay payment function on its iPhones, a feature that is already available in France today.
In the USA, the firm also offers the Apple Card payment card, in partnership with the American bank Goldman Sachs, as well as a service that allows you to send money to your contacts. And more recently, Apple introduced Tap to Pay, a new iPhone feature that allows merchants to accept NFC payments with their mobiles. Like Apple Card, Tap to Pay is currently reserved for the US market.

“Breakout”, Apple's new offensive on financial services?

In an article published this week, Bloomberg indicates that currently, Apple is working on a new project dubbed "Breakout". This would allow the firm to be less dependent on its partners, such as Goldman Sachs, CoreCard, or Green Dot, for financial services.
Nevertheless, Bloomberg specifies that despite this project, Apple would like to continue to work with its current partners, for the products already launched. But the firm would mainly use its own technologies for future products.
Indeed, Apple would like to launch a split payment service, for example, which employees would call Apple Pay Later. A product allowing payment in four instalments would be under study, as well as an offer with monthly payments. For the payment in four installments, the firm would like to use its own technology, but could continue to work with Goldman Sachs for long-term offers.
This project could also allow the launch of Apple Card or Tap to Pay in Europe
Moreover, while the activities of its partners are focused on the United States, the technologies developed by Apple would have a global reach. Thus, the "Breakout" project could also help the firm expand its financial services in other countries.
And this could help the firm achieve its “Breakout” project. For example, Kudos software could be used by Apple to develop its split payment offer. Or, it could be a way for the firm to prepare an international launch of Apple Card.

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