Apple is reportedly working on a multi-year plan to develop its own payment processing technology and infrastructure in an effort to further build out its portfolio of financial products.
As reported by Bloomberg, the move would allow the iPhone maker to reduce its reliance on outside partners but it could also enable the company to expand its payment features beyond the US.
According to people familiar with the matter that spoke with the news outlet, the multi-year plan would bring a number of financial tasks in-house including payment processing, risk assessment for lending, fraud analysis, credit checks and other customer-service functions like handling disputes.
Since Apple is reportedly investigating the idea of launching its own hardware subscription service, being able to run credit checks and risk assessments before providing customers with devices makes a great deal of sense.
Future financial products
Although Apple already offers a credit card as well as peer-to-peer payments for businesses, its efforts to develop its own payment processing technology and infrastructure will be focused on future financial products.
Back in July of last year, news broke that the company is also working on a “buy now, pay later” feature for Apple Pay Transactions that would allow customers to pay for items across four interest-free payments every two weeks or across several months with interest. While the plan with four payments is known internally as “Apple Pay in 4”, the longer term payment plans have been dubbed “Apple Pay Monthly Installments”.
While Apple will continue its partnership with Goldman Sachs according to Bloomberg, the company has been discussing using in-house technology for its “Apple Pay in 4” plan.
At the same time though, the company’s in-house financial services could allow it to expand future services to additional countries. Currently Apple Pay is available in over 70 countries but other services such as peer-to-peer payments, Apple Card and Apple Cash are still US-only.
The news that Apple wants to bring more of its financial services in-house also aligns with a recent job posting looking for a hardware validation engineer to help upgrade its datacenters. Storing financial data and handling transactions could put a heavy load on its systems which is why the company wants to upgrade its datacenters with “next-generation” storage and server equipment from Intel and AMD.