Apple snaps up Credit Kudos in open banking push
Apple has snapped up UK open banking firm Credit Kudos as it ramps up a push into the payments space.
The acquisition of London-headquartered Credit Kudos, which allows businesses to asses loan applicants via banking and payment transaction data, follows a number of new payments products announced by Apple in the past year, including the much hyped Tap to Pay feature for phones.
While neither Credit Kudos or Apple confirmed the deal yesterday, which was first reported by crypto news outlet the Block, links on Credit Kudos’s website now divert through to Apple’s terms & conditions pages.
An Apple spokesperson said: “Apple buys smaller technology companies from time to time. We generally do not discuss our purpose or plans.”
The acquisition from Apple comes after the tech giant announced Tap to Pay last month, which will allow merchants to pay via technology payments firm Block.
The firm also offers the Apple Cash card for digital peer-to-peer payments and is working on a service for Apple Pay that offers a buy-now pay-later style service.
Analysts at fintech consultancy firm 11:FS said the move could mark a push from Apple into the buy-now pay-later space.
Simon Taylor, founder at 11:FS told City PM: “I’ve been convinced that Open Banking is the key to BNPL. Instead of forcing consumers to do a full credit pull just to buy a $50 jacket, why not quickly check their affordability and credit worthiness directly from their bank account?”
“Credit Kudos immediately provides that capability to Apple. If Apple did do BNPL, how much would that impact Visa? Klarna?”
Apple’s move comes at a pivotal moment for the UK’s open banking ecosystem, with regulators set to deliver a verdict this week on the future regulatory framework of the technology in Britain.
Tech London Advocates boss Russ Shaw said the move was a vote of confidence in UK open banking.
“Apple’s takeover of Credit Kudos looks like a strategic move to dive deeper into financial services – and it’s encouraging to see the UK playing a leading role in the open banking arena,” he said.
“This is not the first time Apple has made clear its intentions to expand into this space. Building Apple Pay and launching a credit card with Goldman Sachs both demonstrated a shift of attention towards consumer finance, where Credit Kudos comfortably sits.”
Visa most recently snapped up Swedish open banking giant Tink for 1.8bn euros.