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Chronicles

The story behind the story

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Inside Apple's push to build new financial services, which have suffered from engineering and technical setbacks, leading to slow progress and missed deadlines

Apple's slate of new financial services — including “buy now, pay later” offerings, savings accounts and an iPhone subscription program — have hit delays.

Bloomberg Mark Gurman

Context & Ripple Effects

Apple had already outlined a broader in-house financial-services stack spanning payment processing, lending risk assessment, credit checks and fraud analysis in its planned expansion of financial operations. Its decision to have Apple Financing LLC make credit decisions for Apple Pay Later marked a first move into handling lending itself.

The reported delays show the technical build is constraining that strategy across buy-now-pay-later, savings and an iPhone subscription program. Later related coverage characterizes the same effort as technical groundwork for Apple to take a larger share of financial services.

First-order effects

  • Apple’s buy-now-pay-later, savings-account and iPhone-subscription plans face slower launches and missed internal deadlines as engineering work falls behind.
  • Apple Financing LLC’s planned role in credit checks and loan decisions is harder to scale into a broader services portfolio while the underlying systems remain unfinished.

Second-order effects

  • Apple’s effort to internalize payment processing, risk assessment and fraud analysis is paced by backend execution rather than by the availability of new consumer-facing product concepts.
  • The delayed rollout postpones the point at which Apple can connect its separate lending, savings and subscription initiatives into a more complete financial-services offering.

Third-order effects

  • If Apple completes the technical groundwork described in later coverage, financial services would become a deeper layer of its platform rather than a set of isolated payment features; the setbacks show that transition depends on building regulated operational capabilities in-house.

The trend: Large consumer platforms are seeking a larger share of financial services by bringing lending and payments infrastructure inside their own operating stack.

Discussion

  • @vadimyuryev Vadim Yuryev on x
    I think Spring 2024 makes sense. I'm personally only expecting the M3 chip to launch with the new MBA in the Fall. Apple waited 6 months for the iMac update last time, but since the Mac mini came so late, maybe Apple does give us a laptop + iMac this Fall??? Hmm https://twitter.c…
  • @chriswelch Chris Welch on x
    @markgurman seriously though, what's going on with that classical music app
  • @paterfamilias @paterfamilias on x
    Apple's move on appointing a head of People is only on the Surface https://twitter.com/...
  • @markgurman Mark Gurman on x
    Power On: Inside the delays of Apple's new slate of financial services, from buy now, later to savings accounts to an iPhone subscription program. Also: more on Apple's executive latest reshuffle. https://www.bloomberg.com/...
  • @business @business on x
    Apple's new financial services, including a pay-later offering and savings accounts, have hit delays, @markgurman writes in this week's Power On https://www.bloomberg.com/...