Apple acquires UK Open Banking FinTech

In all discretion, Apple has just bought a British FinTech in Open Banking. It is Credit Kudos, the originator of an alternative credit scoring solution. This acquisition could accelerate the announced launch of its BNPL solution.

FACTS

• Apple and Credit Kudos have not yet confirmed their merger, but the information was revealed by the media outlet The Block before being relayed by the American media outlet CNBC, which cited sources close to the matter.

• A link entitled "Website Terms of Use" on the Credit Kudos website redirects to a page describing Apple's terms of use, confirming the tie-up.

• A spokesperson for Apple said that this type of acquisition is common and that Apple does not usually tell the press about its goals and plans.

• Credit Kudos is a British FinTech that has developed an alternative scoring solution based on Open Banking. Its API promises to help lenders and credit institutions speed up their decision-making by limiting their risks. Credit Kudos is thus positioned as an alternative service to the large rating agencies such as Equifax or Experian.

• This agreement with Apple would value Credit Kudos at nearly 150 million dollars.

CHALLENGES

• Boosting its own offers: The purchase of Credit Kudos by Apple underlines Apple's interest in the credit market. Until now, the American tech giant has positioned itself on this theme by promoting the Apple Card deployed in partnership with Goldman Sachs and MasterCard. However, this acquisition could enable it to speed up the announced launch of its own Buy Now Pay Later solution.

• Aiming for Europe: This acquisition by Apple is also a strong sign of the group's interest in deploying its credit services in Europe, through the door of the United Kingdom, and particularly in countries that do not have a rating agency, such as France.

MARKET PERSPECTIVE

• By buying Credit Kudos, Apple is putting itself on the same level as the American payment giants, which are also pursuing a strategy of buying up European Open Banking players.

• The market was indeed shaken by the consecutive takeovers of Tink by Visa in June 2021, then by that of Aiia by MasterCard the following September.

•