Apple has launched a project to develop its own payment processing technology and infrastructure for future financial products and services including buy now, pay later instalment payments for Apple Pay, credit checking and risk assessment, according to media reports.
Apple has yet to confirm its plans, but sources claim that the project — part of which is known as Breakout — is set to reduce the company’s reliance on external partners and could help it expand services such as Apple Pay into new markets.
The “multiyear plan would bring a wide range of financial tasks in-house”, including “payment processing, risk assessment for lending, fraud analysis, credit checks and additional customer-service functions such as the handling of disputes,” Bloomberg reports, citing “people with knowledge of the matter”.
“The effort is focused on future products, rather than Apple’s current lineup of services.
“The first product that will rely on the new system is expected to be the upcoming ‘buy now, pay later’ service. That feature, called ‘Apple Pay Later’ internally, will have two parts: ‘Apple Pay in 4’ for short-term, four-instalment payment plans without interest and ‘Apple Pay Monthly Instalments’ for long-term payment plans with interest.”
The news comes after Apple acquired UK-based open banking provider Credit Kudos earlier this month.
Apple to enter payment processing market? was written by Tom Phillips and published by NFCW.