Big tech companies are taking over the Fintech markets. Amazon, Apple, Facebook and Google have launched their own payment systems. They are now looking to take over banking, lending, and perhaps even online payday loans related services as well.
Amazon has a few of them: Amazon Pay, Amazon Cash and Amazon Wallet.
Apple has ApplePay and Google has AndroidPay.
These companies are not limiting themselves to just payments though. They are also making other financial service providers part of their ecosystems. All to acquire more targeted data collection from transactions on their own platforms.
These moves will give a company like Apple immense data, and it will help them further refine their products and services.
Let’s have a look at what Apple hopes to accomplish by getting its share of the rapidly growing Fintech space.
Apple’s Quest for Fintech Dominance in 2022
Apple is one of the most valuable companies in the world and has a large market share.
Thanks to the almost cult-like following of their products. Especially for their smartphones, and tablets.
Apple also has an extensive range of products such as Macs, iPads, Watches and other hardware devices.
However, Apple never really had it’s own payment system.
Guess they soon realized that if they have millions if not billions of users, then why not have an in-house payment system as well?
Makes sense right? Hence the creation of Apple Pay and BNPL service with Goldman Sachs.
Apple has been known for its innovative strategy, simplicity and elegance in products over the years.
It is also one of the most valuable brands in America with a brand worth $214 billion according to Forbes. Apple is also ranked among the top 20 most valued brands worldwide according to Interbrand; ranking 17th on their latest list with a brand worth $114 billion.
What is Apple Pay?
Apple Pay is a mobile payment service developed by Apple Inc. which allows users to make payments at merchants with their iPhone, Apple Watch, iPad, etc.
The idea is to use EMV cards (credit and debit), and NFC-based payment cards as well as contactless payments from supported banks in the United States, Canada, Australia and China.
In the US, it can be used through Apple Pay Cash.
The way it works is the user can tap their iPhone to the contactless reader, and their payment is processed.
Apple Pay should not be confused with Apple Pay Cash, which is a peer-to-peer payments service.
The Future of Apple Pay and Fintech in 2022
Fintech is an innovative, disruptive, and fast-growing sector in the financial services industry.
A number of online platforms are changing the way people make transactions and manage their finances. With big tech getting involved, especially Apple, expect some rapid and next level innovations.
The future of Fintech will largely depend on how institutions respond to these changes too.
Banks can’t be just pushed over as they don’t want to loose their dominance as well.
They could incrementally adopt the innovation or they could resist it. It’s not clear which option will prevail, but there are some signs that some institutions may have to embrace these changes.
