Apple Financial Offerings: Tech Company or Bank in Disguise?

"Apple's Financial Offerings: Tech Company or Bank in Disguise?

Apple Pay

Apple's first notable debut into financial products began in 2014 with the introduction of Apple Pay to the U.S. market. This mobile payment service allows users to make convenient contactless payments with their Apple devices in physical stores, online, and within apps, thereby eliminating the need of physical cards. Transactions conducted with Apple Pay are secure, utilizing tokenization to protect card information and incorporating biometric authentication.

Apple Wallet

In September 2015, Apple introduced Apple Wallet, a versatile application that stores digital documents, debit cards, and most of Apple's financial services. It integrates with other Apple services and devices and also serves as the hub for Apple Pay, which cannot function without it.

Apple Cash

December 2017 marked the launch of Apple Cash, a service that enables users to send and receive money via the Messages app. Apple Cash can be used to make zero-fees payments with Apple Pay, transfer money to a bank account, or send money to other Apple users, allowing easy and quick transactions between friends and family, strengthening the network effect within the Apple ecosystem.

Apple Card

Two years after the arrival of Apple Cash, Apple partnered with Goldman Sachs and Mastercard to develop a credit card, intuitively called Apple Card. It provides cashback rewards on purchases, and the physical titanium structure of the card, which lacks a visible card number, CVV, or expiration date, enhances security, requiring users to access this information via the app when needed. Also, the program Apple Card Family extends the capabilities of the Apple Card by enabling families to share a single credit card account with up to five members.

Apple Tap to Pay

February 2022 saw the launch of Apple Tap to Pay, a softPOS solution that allows merchants to accept contactless payments directly through their iPhones without needing additional hardware. This innovation has made it extremely simple for small businesses and enterprises of all sizes to accept digital payments.

Apple Pay Later

In March 2023, Apple introduced Apple Pay Later, a service that allows users to split the cost of a purchase into multiple interest-free payments, making a strong entry into the competitive Buy Now Pay Later (BNPL) market.

Apple Savings

Finally, in April 2023, Apple also launched Apple Savings, a high-yield savings account, integrated with the Apple Card, that allows users to save money and earn competitive interest rates (4.15% APY as officially stated). Another important feature of Savings is its integration with other Apple services. The rewards and cashback earned through spending with the Apple Card, for example, can be transferred to Apple Savings. "

Author

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