Apple offers a variety of financial technology (fintech) services in its iOS 16 operating system, which was released this fall.
Apple announced several new features for its iPhone Wallet app at WWDC 2022, competing directly with products from fintech companies like Affirm and PayPal. It should be noted that there is a postpaid purchase service, Apple Pay Later. The news sent Affirm shares down more than 5% on June 6 and another 4% in morning trading on June 7.
Apple will also launch a new payment system later this month that allows payments by touching iPhones together. This is a feature of Block compared to Square. The iOS 16 wallet also tracks online orders purchased through Apple Pay.
All of this points to one of the most interesting dark spots in the Apple ecosystem: the ever-expanding set of financial products in Wallet. Many of the features don’t yet generate direct revenue for Apple, but they make Apple Pay more attractive to people who haven’t tried it yet. Apple charges a fee for each Apple Pay transaction, so the more people who use it, the more you benefit. Like most new iOS features, it helps keep customers in the Apple ecosystem and upgrade to a new iPhone when it’s ready.
However, the new Wallet feature also appeared against the backdrop of global economic uncertainty. Inflation is rising sharply. Gasoline prices continue to hit record highs. Many are worried about the next recession. This can be a tough time for Apple when it comes to launching a product with the goal of encouraging people to buy more. The company’s competitors in the prepaid and postpaid space have struggled in recent months as customers’ spending habits change. Other cryptocurrency and fintech companies like Robinhood, PayPal, and Coinbase have also not escaped the scene.
Apple has a long-term vision with Wallet. Introducing the latest features on June 6, the leaders said the ultimate goal is for the Wallet app to be able to replace everything in a user’s wallet. However, some features are slowly rolling out, like the ability to add a driver’s license, which is only available in select US states. Still, they can only be used at TSA checkpoints at an airport. . . of Phoenix. Car manufacturers are “soft” in applying the function to save the version of the digital key in the iPhone.
However, Apple isn’t too concerned about speed. The company expects consumer demand to make third-party apps faster. As for fintech, Apple is building a platform to boost the payments segment by adding more features to Apple Pay, an iPhone wallet to pay for everything, instead of using a credit card. With over a billion active Apple devices, many people will be exposed to these services.