Apple becoming a bank? Don’t count on it

“Later this month, you’ll start to notice people buying their coffee or newspaper with their iPhone. Apple Pay, the Californian technology giant’s contactless payment technology, will hit British high streets at some point in the next four weeks,” James Titcomb writes for The Telegraph. “The service is slick. Hold your iPhone up to a retailer’s card terminal, and it will scan your thumbprint, access your card details and make a secure payment, without the need for cash or entering a PIN code.”

“Apple Pay is bound to be a success,” Titcomb writes. “When that happens, one can expect to see a string of pundits lining up to declare that Silicon Valley is treading on the banking world’s toes. Apple has shaken up telecoms and music; Amazon and eBay the high street; Uber transport; and Airbnb the hotel industry.”

Titcomb writes, “Regulation is the major reason that Apple, Google and Facebook are so unlikely to become banks, beyond occasionally dipping their toes in payments and money transfers.”

Read more in the full article here.

MacDailyNews Take: Would you bank with Apple? Depending on what they’d offer – and Apple doesn’t enter industries without being able to offer a unique proposition, so we’d expect something enticing – we likely would.

Why Apple may become a bank within the next five years – June 22, 2015


  1. Considering my current bank has no fees, reimburses all ATM fees, and allows me to easily request unlimited replacement cards through its mobile app, it would take at least that and some other added benefit for me to move to Apple Bank.

    1. Sounds like your bank provides good services. It probably pays next to zero interest on deposits, too, while also charging comparatively high interest rates on loans and revolving credit. Nothing is free.

        1. I agree. I have accounts at USAA and NFCU (Navy Federal CU) and couldn’t be a happier. NFCU pays a slightly higher rate on savings (0.45% v 0.30%) at the moment, with both paying higher rates than most banks offer these days. As for Apple. I agree, They’d have to offer something compelling for me to move money out of USAA or NFCU. Name alone doesn’t qualify.

            1. @Tflint. If I lived paycheck to paycheck, I might agree with your sarcasm. But I don’t live paycheck to paycheck — far from it. Thus, the quarter percent you see fit to ridicule amounts to a fairly substantial difference in the monthly dividend I receive from each of these institutions.

        1. when i joined many years ago (have 40 year stickers on my cars!), you had to be a warrant or commissioned officer to join. i think even dependents can join now and stay with them.

  2. I’d rather see Apple enter the ISP market (with robust data encryption / privacy). The price-gouging internet access monopolies (and Google Fiber) would be less interesting to the masses if Apple played a “high speed, unlimited data, and privacy at a fair price” card in that same field.

    Competition in this market would do so much good for Apple’s customers. You can see this by how the big ISP’s change their tune when they hear Google Fiber is coming into a certain market. Prices automatically drop and speed increases dramatically. Imagine if Apple did the same thing as Google, while also touting privacy as a differentiator?

    That would be a “unique proposition” that I could see people rapidly flocking to in droves, given the current state of affairs in the US, and abroad.

  3. The banking industry is so heavily regulated, other then providing excellent customer service and proceeds, there isn’t much to differentiate one bank from another…

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