Is the “Bank of Apple” on the horizon? Apple last week announced Apple Pay Later which provides users in the US with a seamless and secure way to split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with zero interest and no fees of any kind. Built into Apple Wallet and designed with users’ financial health in mind, Apple Pay Later makes it easy to view, track, and repay Apple Pay Later payments within Wallet. Users can apply for Apple Pay Later when they are checking out with Apple Pay, or in Wallet. Apple Pay Later is available everywhere Apple Pay is accepted online or in-app, using the Mastercard network. Pushing deeper into financial services, Apple will handle credit checks and loan approval itself within its new Apple Pay Later service.
Bram Berkowitz for The Motley Fool:
With Apple continuing to walk and talk more like a bank, could the company ever get a banking charter and become one?
While it’s very uncommon for a large tech company to outright obtain a bank charter, large payments and tech company Block did manage to obtain an industrial bank charter after a very lengthy process. An industrial bank charter is for a state-chartered bank with insurance from the Federal Deposit Insurance Corp. (FDIC), but it is a bit more limited in nature.
So, while Apple could try to pursue a bank charter, I doubt it would, given how long the process might take and the pushback it might receive from the banking industry and other regulators due to antitrust concerns… I find it unlikely that Apple would ever pursue a bank charter due to pushback from regulators, the lengthy application process, and the need to hold regulatory capital. But perhaps after setting up and running some of its banking infrastructure, Apple will get more interested, especially if it sees serious profit potential.
MacDailyNews Take: One thing to keep in mind:
I’ve always wanted to own and control the primary technology in everything we do. — Steve Jobs, October 12, 2004
Echoed:
In order to build the best products, you have to own the primary technologies. Steve felt that if Apple could do that — make great products and great tools for people — they in turn would do great things. He felt strongly that this would be his contribution to the world at large. We still very much believe that. That’s still the core of this company. — Apple CEO Tim Cook, March 18, 2015
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Quite frankly, it is really cool that Apple is developing and striving for improvements. For me, Apple Pay Later is a great step forward which will open new opportunities for people and which will help Apple to make a profit. Apple Pay Later has a great deal of advantages and creates great conveniences for people. Of course, there are certain prerequisites that Apple can get a banking charter and become one, but we only can make assumptions. I think that everything possible and Apple can change their concept, but I share your position that it is unlikely that it will happen. From my point of view, even if it happens, it won’t definitely happen soon because there are a lot of difficulties. I can’t deny the fact that Steve Jobs is a huge innovator and ideas generator, but perhaps in this case the goal doesn’t justify the means and it is not so rational.
Just a few seconds after you add your Equa bank payment card to your Apple Wallet, you can go to the nearest store and see how easy it is to pay. I find it very handy, really useful.
I find it very handy, really useful