Apple working to reduce reliance on third parties for future financial products: report

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Apple (NASDAQ: AAPL) is working on a multi-year plan that would reduce its dependence over time on third parties for financial services, including payment processing and infrastructure, depending on Bloomberg.

The project, known as Breakout, would bring tasks such as payment processing, risk assessment, fraud analysis, credit checks and other finance-related projects within the larger biggest tech company in the world and push it further into more financial services.

Apple shares (AAPL) were down just under 0.5% to $178.26 Wednesday at midday.

Apple did not immediately respond to a request for comment from Seeking Alpha.

Apple (AAPL) led by Tim Cook already offers a credit card, Apple Card, which it associates with Goldman Sachs (GS) for loan decisions.

Apple Card uses CoreCard (CCRD) as its payment processor and may seek to augment or replace the software company in the future. Basic map (CCRD) shares fell more than 9% on the back of the report.

The company is also rumored to be working on a “buy now, pay later” product that pits it against major players in the industry, such as Affirm (AFRM) or Block (SQ), which recently bought Afterpay.

Affirm (AFRM) and Block (SQ) stocks fell following the report.

Apple also offers peer-to-peer payments through Apple Pay, and its Wallet app can store other credit and debit cards for use with Apple Pay.

Last month, Apple (AAPL) unveiled a Tap to Pay feature for iPhone that would allow small businesses to accept credit card payments without the need for additional hardware.

Earlier this month, Apple (AAPL) acquired UK banking startup Credit Kudos, a move some say could be a precursor to the introduction of the Apple Card overseas.

Apple (AAPL) recently became the first streaming service to win the Best Picture Oscar for CODA at the 94th Academy Awards, an occasion Wedbush Securities called “a mic drop moment.”

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