Apple, the giant tech company, has reportedly acquired Credit Kudos, a UK-based fintech startup , according to the Financial Times. The manoeuvre is seen to bolster the payments technology by the Macbook and iPhone manufacturers.
Credit Kudos relies on machine learning to create an alternative to traditional credit scores, which might suggest that Apple could expand its arms into lending services. Last year, reports suggested Apple was working on introducing a 'buy now, pay later' feature for Apple Pay, similar to those offered by Klarna, PayPal and Afterpay.
Simon Taylor, the Co-Founder of 11:FS and Chief Product Officer at fintech consultancy Credit Kudos, told the Financial Times that the acquisition of Credit Kudos could provide Apple with this functionality. “Instead of forcing consumers to do a full credit pull just to buy a $50 jacket, why not quickly check their affordability and creditworthiness directly from their bank account?” he commented.
A London-based fintech raised GBP 5 million in 2020 in a funding round led by Albion VC to make affordable credit more widely available and facilitate faster loan decision-making across a variety of industries, including rental apps, brokers and other fintech.
Bank statements and utility bills, which are traditional credit assessment measures, have been criticized for their inaccuracy in determining a consumer’s financial situation.
No Comments on the Acquisition
Credit Kudos declined to comment further on the acquisition. Apple issued the following brief statement: “Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.”
It is a rare occurrence for the Silicon Valley-based companies to make large acquisitions, instead opting to acquire smaller teams and add-on technology that it can use to accelerate the development of new iPhone features.
As of press time, there is no additional confirmation on the purchase, aside from the Financial Times reporting about the matter.
