Apple is winning in financial services
Apple’s revolutionary iPhone has become the platform for thousands of financial services companies, including Buy Now, Pay Later (BNPL) providers. The one guaranteed winner is Apple, which, smartly, assumes no risk itself.
An iPhone doesn’t just act as a metaphorical wallet, it’s also the store where the money is spent. That means Apple can just collect fees on every transaction, rather than finance them.
Apple Pay has become the most popular digital wallet for consumers paying in stores, with fully five times the market share of Google Pay.
In most of those transactions, the card is not an Apple Card but one from one of Apple’s thousands of global bank partners. Even when it is an Apple Card, that card is issued by Goldman Sachs.
Apple reportedly receives a 0.15% fee on every Apple Pay credit card transaction, no matter the card issuer, and is opposing attempts to bring that fee down.
The amount it’s charging BNPL companies and rewards points providers has not been made public but is probably significantly higher.
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MacDailyNews Take: Providing financial services can be risky. Charging financial services fees to operate on your platform is not.
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