Apple has been taking steps to enhance its payment services and take on the financial industry. With the release of iOS 17, Apple’s payment capabilities are set to become even more powerful, and this could be a big blow to the fintech industry.
Apple’s payment services include Apple Pay, Apple Card, and Apple Cash. Apple Pay is a digital wallet that allows users to make contactless payments using their iPhone, iPad, or Apple Watch. Apple Card is a credit card that is linked to the Apple Pay digital wallet. Apple Cash is a peer-to-peer payment service that allows users to send and receive money through iMessage.
Apple Pay is available in more than 50 countries and is supported by most major banks and credit card issuers. Apple Card is only available in the United States, but Apple is working to expand its availability to other countries. Apple Cash is only available in the United States.
Payment Features in iOS 17
Apple is set to release iOS 17 later this year, and it will include several new features that will enhance its payment services. These features include:
- Apple Pay Later: Apple Pay Later will allow users to make purchases and pay for them later. Users will be able to choose from several payment options, including paying in installments over time or paying the full amount at a later date.
- Apple Pay Passes: Apple Pay Passes will allow users to store boarding passes, event tickets, and other types of passes in their Apple Pay digital wallet.
- Apple Cash Family: Apple Cash Family will allow families to share an Apple Cash account and track spending across multiple devices.
- Apple Card Family: Apple Card Family will allow users to add family members to their Apple Card account and set spending limits for each family member.
- Apple Pay for Business: Apple Pay for Business will allow businesses to accept payments through Apple Pay, even if they don’t have a physical card reader.
The fintech industry has been disrupting traditional financial services by offering innovative solutions that are more convenient and cost-effective for consumers. However, with Apple’s enhanced payment services, the fintech industry may face a tough challenge.
Apple Pay Later could compete with fintech companies that offer installment payment options, such as Affirm and Klarna. Apple Pay Passes could compete with fintech companies that offer digital ticketing solutions, such as Eventbrite and Ticketmaster.
Apple Cash Family and Apple Card Family could compete with fintech companies that offer family banking solutions, such as Greenlight and FamZoo. Finally, Apple Pay for Business could compete with fintech companies that offer mobile payment solutions for businesses, such as Square and Stripe.
Apple has several advantages over fintech companies. Firstly, Apple has a massive user base. There are more than 1.65 billion active Apple devices in the world, and most of these devices support Apple Pay. This gives Apple a significant advantage in terms of user adoption and market penetration. Secondly, Apple has a trusted brand.
The company also made mention of launching its search engine by 2025
Apple is known for its quality and security, and users trust Apple with their personal and financial information. This could give Apple an advantage over fintech companies that are still building their brand and reputation.
Furthermore, Apple has a closed ecosystem, which means that it controls both the hardware and software of its devices. This allows Apple to provide a seamless user experience and ensure the security of its payment services. Fintech companies, on the other hand, rely on third-party hardware and software, which can be less secure and less integrated.
