Apple continues to expand its FinTech services 📲; Plaid is preparing for an IPO 👀; Will we see warning signs after banks report Q3 earnings? 🤔

FinTech is Eating the World, 19 October

Hey Everyone,

Good morning & happy Friday! Due to travels yesterday’s issue is getting out today. But it’s worth the wait as we’re going to look at Apple which continues to expand its FinTech services (why the new feature makes sense + lots of bonus reads & deep dives), Plaid that’s preparing for an IPO (it’s about time + more dives into Plaid & priceless IPO resource), and question whether we will see warning signs after banks report Q3 earnings (it’s getting intriguing out there!). Let’s jump straight into the interesting stuff 🌶

Apple continues to expand its FinTech services 📲

The news 🗞️ Tech titan Apple AAPL 0.00%↑ is continuing to expand its financial services capabilities by allowing users to set up recurring payments and automatic reloads in Apple Pay.

This new Auto Pay feature enables iPhone users to schedule regular, automated transfers from their Apple Cash balance, adding convenience and simplicity.

Let’s take a look at this and see why it matters.

More on this 👉 While a relatively small upgrade, Auto Pay builds on Apple's broader ambitions to make financial transactions seamless for its customers. We can remember that Apple already offers peer-to-peer payments, credit cards, installment plans, savings accounts, and an electronic wallet for storing cards.

More services are definitely on the horizon as Apple leverages its ecosystem.

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The value add 💸 Looking at the big picture, the introduction of scheduled transactions further integrates financial services into iPhone users' daily lives. Customers can now set money aside automatically, ensuring funds are available when recurring bills or payments come due.

This convenience encourages people to manage finances through Apple Pay rather than traditional methods.

ICYMI: Apple now runs one of the largest neobanks in the world 🤯 [+ lots of bonus reads]

The challenge 🥶 But there’s one challenge - Goldman Sachs GS 0.00%↑. Apple's partnership with Goldman (that’s powering most of their finance efforts) is on shaky ground. GS has struggled with its consumer banking arm Marcus, recently selling its GreenSky business at a loss.

While it’s hard to draw any conclusions as of yet, one thing is clear - Goldman's upcoming Q3 earnings report may provide insight into whether it remains committed to the partnership or not (more on that - later today!). If not, Apple may look for a new partner for future financial products. Or do more stuff themselves…

ICYMI: Goldman Sachs regrets Apple Card, calls it a “mistake” and is trying to escape the deal ASAP 😳 [unpacking what’s happening & what’s next + lots of bonus reads and deep dives]

✈️ THE TAKEAWAY

Looking ahead 👀 First and foremost, the launch of Auto Pay moves Apple toward its goal of making the iPhone a central financial hub. With payment cards, BNPL, savings, and now scheduled transactions housed under one roof, customers may be less inclined to interact with traditional banks for basic financial needs. Because you can get it all from Apple. And when it comes to Apple, more financial services means both new revenue streams and increased customer loyalty and engagement. As people grow reliant on Apple Pay's simplicity for transactions, they inevitably become more and more embedded into the Apple ecosystem. And that’s BIG.

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