Apple is developing technology and infrastructure to support its future financial products, including payment processing, reported Bloomberg.
The move is said to be part of the iPhone maker’s strategy to bring its operations in-house and cut dependency on third parties in the future.
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According to sources familiar with the development, the firm’s multi-year plan aims to make a range of financial functions internal.
These include risk assessment for lending, fraud analysis, credit checks in addition to payment processing and new customer-service functions, including dispute handling.
Apple has been strengthening its presence in the financial service space in recent years. Its current line-up of financial offerings includes a branded credit card, peer-to-peer (P2P) payments, a payment wallet app.
Last month, the firm announced plans to roll out a Tap to Pay feature that will enable US-based businesses to accept a range of contactless payments via their iPhones.
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By GlobalDataIt is also said to be developing a subscription service focused on hardware as well as a buy-now-pay-later (BNPL) option for Apple Pay transactions.
However, the tech giant is targeting its future financial products, rather than its existing service, with its latest strategy.
The sources divulged that a part of this strategy has been dubbed ‘Breakout’ internally to stress its ambitious plan to break away from the current financial system.
Currently, Apple taps Goldman Sachs for services such as lending, credit checks, and certain customer-service tasks as well as for the handling of transaction and payment histories.
CoreCard acts as the core processor for Apple Card with a responsibility to send out transaction details to lenders.
Apple is expected to continue its partnership with both Goldman and CoreCard on these products, the report said.
Besides Apple, tech giants Google and Facebook’s parent Meta Platforms have also been accelerating their push into the financial space.
Last year, a report by Bloomberg said that Meta set up a new financial group named Facebook Financial to pursue its payment ambitions.
