Introduction:
Apple has been a major player in the financial services industry for several years now. The company has launched several payment and financial products over the years, which have helped it to establish a strong foothold in the industry. In this blog post, we will take a look at the timeline of Apple’s payment and financial product launches and discuss the role of Apple in financial services with an embedded finance approach into payments, savings, cards, credit, insurance, and small business solutions.
Apple Pay:
Apple Pay was launched in 2014, which allowed users to make payments using their iPhone or Apple Watch. The service was initially launched in the US and has since expanded to several other countries.
Apple Cash:
In 2015, Apple launched Apple Pay Cash, which allowed users to send and receive money through iMessage. This service was later renamed to just Apple Cash.
Apple Card:
In 2019, Apple launched the Apple Card in partnership with Goldman Sachs and MasterCard, which is a credit card that is integrated with the Apple Wallet app. The card offers cashback rewards and has no fees. In 2020, Apple launched the Apple Card Family, which allows users to share their Apple Card with family members.
Apple Tap-to-iPhone:
Announced by Apple in February 2022, Tap-to-iPhone is a feature that allows businesses to use their iPhones to “seamlessly and securely” accept Apple Pay payments with a simple tap. The feature also works for contactless credit cards and debit cards, as well as other digital wallets.
The feature is built into Stripe terminals SDK for iOS. It can be added into existing Stripe accounts in a matter of weeks. Tap-to-iPhone is also available in Apple Retail Locations and Square has also launches support for this innovative feature. PayPal and Venmo are also set to support the iPhone Tap-to-Pay feature on their iOS apps.
Apple Pay Later:
In March 2023, Apple introduced Apple Pay Later, which allows users to split purchases into four payments, spread over six weeks with no interest. This service is designed with users’ financial health in mind and is expected to be a popular option for those who want to make purchases but don’t want to pay for them all at once.
Apple Savings Account:
But their latest disruption launched in April 2023, and moving away from payments, is a savings account which can be linked to the Apple Card cashback rewards, offering a 4.15% interest rate – four times the national average. All these ambitious efforts will gradually reduce Apple’s reliance on outside partners.
This savings account puts even more pressure on the legacy financial sector in the country, with nervous clients looking to withdraw their money and place it elsewhere at the slightest hint of instability – or at any sign of a better deal, and no one is better positioned than Apple to serve these customers.
Apple’s Financial Services Ecosystem:
Apple’s financial services ecosystem has been growing steadily over the years. The company has been able to leverage its large user base and its strong brand to establish itself as a major player in the industry. Apple’s focus on user privacy and security has also helped it to gain the trust of its users.
Investments in the US:
In addition to its payment and financial products, Apple has also been investing heavily in the US. In 2021, the company committed to making new contributions of more than $430 billion in the US and adding 20,000 jobs across the country over the next five years. This shows that Apple is committed to supporting the US economy and creating jobs.
Conclusion:
Overall, Apple has played a significant role in the financial services industry. The company’s payment and financial products have been well-received by users and have helped it to establish a strong foothold in the industry. With the introduction of Apple Pay Later, Apple is expected to continue to innovate and grow its financial services ecosystem. While Apple’s launch of their new savings account offering doesn’t just change their portfolio – it changes the industry.
I leave you with this question, are we seeing the foundation of an Apple Bank?
Exciting times ahead for sure!
Fintech Cafe 
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