Apple expands fintech ambitions in iOS 16
Apple Pay Later
Courtesy: Apple Inc.
Apple is becoming a Fintech Company.
The company unveiled several features in the iPhone’s Wallet app Monday at their developers conference. These new features directly compete against products by other fintech companies such as AffirmAnd PayPal. Apple Pay Later, a service that allows you to buy now and pay later. Affirm shares fell more than 5% on Monday due to the announcement, with a further 4% drop Tuesday morning.
Apple also plans to launch an innovative payment system this month. You can pay anyone by tapping your iPhone on the person’s iPhone. This is a direct rival to Block‘s Square. You will also be able to track orders placed online using Apple Pay via Wallet iOS 16
All of this points to one of the most interesting corners of the Apple ecosystem — a growing suite of financial products within the Wallet app. Although many of these features don’t make Apple Pay any more appealing, they make it easier for users to try Apple Pay. Apple pays a small amount for every Apple Pay transaction. Therefore, it’s more attractive to Apple Pay if there are more users. It’s a mechanism that keeps customers in Apple’s system and allows them to upgrade to new iPhones when necessary.
Apple’s new Wallet capabilities come at a time when economic uncertainty is high. Still, inflation is rampant. Record high gas prices are still being recorded. Many people are worried about the upcoming recession. Apple could have a difficult time launching a product to encourage more people to purchase products if these trends are not stopped.
Apple’s rivals in buy now, and pay later have had a difficult time in recent months due to shifting consumer spending from goods towards services. Others fintech and cryptocurrency companies include Robinhood, PayPalAnd CoinbaseWe also had a difficult year.
Apple’s Wallet vision is longer-term. The company’s executives announced Monday the most recent features. They stated the ultimate goal for the digital Wallet to replace your entire physical wallet.
Some areas are still slow, such as last year’s new feature that allows you to attach your driver’s licence. This is currently only available in two states (US) and will be added soon. You can’t use your ID at TSA Checkpoints in Phoenix. The iOS feature allows you to store digital copies of your car keys on your iPhone, but it has been slow adoption by car manufacturers.
Apple said yesterday that there is little to worry about the slow adoption. We hope that consumer demand will encourage third parties to adopt this technology.
Apple’s fintech business is gaining momentum by adding more functionality to Apply Pay, Wallet and other functions to the platform. This will allow users to make payments using their iPhones instead of credit cards. These products will be more accessible to more people because of Apple’s size, with over a billion users.