Apple Pay Later
Courtesy: Apple Inc.
Apple is becoming a fintech company.
The company announced some new features in the iPhone wallet app at a developer conference on Monday. These features directly compete with the products of other fintech companies, such as: Affirm When PayPal.. The big problem is a service that buys now and pays later called Apple PayLater. With that announcement, Affirm’s share price fell more than 5% on Monday and another 4% on Tuesday morning.
Apple will also launch a new payment system later this month, allowing people to pay someone by tapping on the iPhone.It’s a direct competitor blockSquare. You can also use the iOS 16 Wallet to track online orders purchased through Apple Pay.
All of these show a suite of growing financial products within the Wallet app, one of the most interesting corners of the Apple ecosystem. Many of these features aren’t designed to benefit Apple directly, but they make Apple Pay more appealing to those who haven’t tried it yet. (Apple is a small part of all Apple Pay transactions, so the more people use it, the better it will be for Apple.) Like most major new iOS features, this will serve your customers. It’s also another mechanism for trapping in Apple’s ecosystem and upgrading to a new one. IPhone when ready.
However, Apple’s new wallet feature is also emerging during times of high financial uncertainty. Inflation is still fierce. Gas prices continue to hit record highs. And there are a lot of very real fears about the upcoming recession. If these trends continue all year round, it can be a difficult time for Apple to launch a new product designed to get people to buy more.
As consumer spending shifts from goods to services, Apple’s new rivals are buying now and postpaid space has been struggling in recent months.Other fintech and crypto companies, etc. Robin hood, PayPal When Coinbase I had a hard time this year as well.
Apple has a long-term vision for Wallet. When the company announced the latest features on Monday, executives said the ultimate goal was for the digital wallet app to replace all of the physical wallets.
But things are slowly moving in some areas, such as last year’s ability to add a driver’s license. This feature is only available in two states in the United States and is planned for a while. Still, you can only use your ID at a TSA checkpoint at one of Phoenix’s airports. Automakers are also lagging behind in adopting iOS features that allow digital versions of car keys to be stored on mobile phones.
Still, Apple yesterday told me I had little to worry about its late hiring. Consumer demand is expected to encourage third parties to adopt this technology.
However, on the FinTech side, Apple will not only pay using the iPhone instead of a credit card, but will also provide a foundation to boost the payment business by layering more features into Apply Pay and Wallet. I’m building. And because of Apple’s scale, with over a billion devices in use, more and more people are about to be exposed to these products.