But neither is the smartphone business, nor the PC business. Services brings in more revenue than each of Mac, iPad, and Wearables.Īnd sure, banking generally isn’t a very profitable business. Yes, Apple may be a hardware company first and foremost, but its Services are now a massive business on their own. Increasing focus on ServicesĪ related development over the course of the past decade has been the growing importance of Services to Apple’s bottom-line. Here, Apple created a financial subsidiary – Apple Financing LLC – and this company obtained the necessary licenses to operate some banking services directly. Plenty of profit, zero risk, zero legislative bureaucracy.īut Apple Pay Later took a different approach. There were many who thought this would always be Apple’s model – use its branding and ecosystem to acquire customers, take a cut from its partners, while avoiding the need for any kind of banking or credit license. Apple was essentially the brand for services actually offered by other companies. With Apple Pay, Apple Card, and the Apple Card Savings Account, the Cupertino company partnered with existing banks and finance companies. Which was … significant! It reportedly attracted deposits of $400M on its first day, and had hit almost a billion dollars just three days later. But again, the branding and ease of account opening plays a significant role in take-up. Launched last month, the Apple Card Savings Account offers 4.15% interest, compounded daily – an attractive rate for an instant-access account. It began a gradual rollout a little over a month ago.Īs with the Apple Card, Apple Pay Later didn’t offer the best short-term financing option out there, but again brand-name, painless sign-up, and instant access made it appealing. One report suggested that 60% of cardholders use it as their primary card.Ģ023 saw two further financial product launches … Apple Pay Laterįirst announced last year, and set to launch later in 2022, the Apple Pay Later service was delayed until this year.
Other cards offered better cashback deals, but it still proved incredibly popular thanks to Apple branding, the world’s simplest and fastest sign-up process, and great account management through the Wallet app.īy early 2022, with the card still only available in the US, the Apple Card hit almost 7M users. Apple CardĢ019 saw the launch of the Apple Card. Some commenters responding to my 2015 piece thought that Apple might make an initial move into banking via peer-to-peer payments, and that did indeed happen with the launch of Apple Cash (originally Apple Pay Cash) in 2017.Īpple quickly started successfully competing with the established players – Square, Venmo, and PayPal. I listed seven reasons why I thought Apple might become a bank – even if I was optimistic on timing. Once Apple Pay launched, it seemed to me that things were unlikely to end there, and the iPhone maker would move further and further into the financial world. By 2020, Apple Pay was accounting for 5% of the world’s card payments. Its main competitor, CurrentC, closed its doors just two years later. Launched a year later, in 2014, Apple Pay immediately became the leader in the mobile wallet space, with more than a million cards added in the first few days. Since then, of course, Apple has made quite a few moves in this direction. I can say this aspect of Touch ID will be more magical then what we have seen thus far.” One that is very clear is retail payments and Apple will have quite a number of unique ways they will solve real problems for merchants and iPhone users. “There are dozens of applications and use cases on the roadmap,” he wrote, “and I am certain a developer economy will build around this amazing technology. And its applications will go far beyond iPhone unlock and iTunes purchases.
#TEN YEARS AFTER A SPACE IN TIME YOUTUBE HOW TO#
I can’t take much credit for the 2013 piece, given that it was 1st American Card Service’s CEO who alerted me to the Secure Enclave tech behind Touch ID being tailor-made for a secure payment service.īrian Roemmele, CEO of 1st American Card Service, said that Apple’s attempt to solve the problem of how to develop a truly secure access system goes all the way back to a patent application in 2008, but it was only through the A7 chip – specifically created by ARM with mobile payment security in mind – that the company finally had a gold-standard solution. Given that not even Apple Pay existed back then, I’ll be the first to admit that it seemed a pretty out-there idea at the time.īy 2015, it seemed significantly less of a stretch, and yesterday’s billion dollar news brought us even closer … It’s almost a decade since I first suggested that we might one day see an Apple Bank.
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