Apple is building a “world without a bank”

Starting with IOS, after payment services and credit CARDS, Apple is gradually building a mobile ecosystem for its own company. The tech giant is no longer a pure manufacturer of mobile phones and hardware.

The Website of French weekly L ‘Express reported on June 27 that, after the payment business and credit CARDS, Apple is now launching an attack on the consumer-loan industry.

Unlike other consumer platforms, however, installment loans on Apple’s official website are not issued by apple’s partner Banks, it provides a loan service that Apple has issued on its own…

Now when you shop at Apple using Apple Card, you can pay monthly for your new iPhone, iPad, Mac, and eligible accessories at 0% APR and get 3% Daily Cash back — all up front.¹

On the Apple website, as you can see, it says: Pay for your new Apple products over time, interest-free.

Now when you shop at Apple using Apple Card, you can pay monthly for your new iPhone, iPad, Mac, and eligible accessories at 0% APR and get 3% Daily Cash back — all up front.¹

The “Apple” loan service is just the latest.

In late 2019, Apple quietly entered the field.

After that, holders of the Apple credit card, which apple launched in August 2019, will be able to borrow money to buy the iPhone. A few days ago, Apple expanded credit card lending to desktops and iPads. These loans are not subject to interest: zero-interest loans (repaid in 12 or 24 months). However, these services are currently only available in the United States.

According to the report, the move can better target customers by avoiding the middleman in controlling customer relationships, from production to sales to finance.




Apple is pushing this strategy in small steps. In 2015, Apple first launched its payment service, Apple Pay, aimed at bank customers. Today, Apple Pay is the most used mobile payment tool in the U.S. and Europe, with more than 1 billion transactions a year. Only China’s Alipay and WeChat Pay, which have 17 billion deals in 2019 and 18 billion in 2019, still lead Apple Pay with a strong Chinese market.

Apple then introduced the Apple Credit Card. This is a credit card it launched in partnership with Goldman Sachs, which is linked to the holder’s Apple account (iPhone and Apple Watch) to support their payment and banking activities.

The launch of the Apple Card marks a major expansion by the tech giant into financial services; The company broke into this space with the launch of Apple Pay in 2014. Users need to register for Apple Card on their iPhone.

As a high-profile new product in Apple’s online services business, investors and analysts have high hopes for it. Apple executives have also stressed that the product is an engine of growth for the company.

Apple is far from the only company preparing for a “bank-free world,” the report said. The report lists Google, Samsung and Amazon, all with similar strategies: placing more bets on financial services so they can lock in customers and drive sales. The tech companies already have their own payment systems (Google Pay, Samsung Pay…. )and are also working on their own credit card plans.

After that, the next stage may be for the tech giants to roll out full banking services.