Apple Acquires UK Banking Startup in Potential Hint at International Apple Card Launch

Apple has acquired Credit Kudos, a UK open banking startup that seeks to help lenders make better decisions.

Credit Kudos uses transaction and loan outcome banking data from the UK to create insights and scores. According to its website, the company offers a way to get faster, automated decision-making about loans with reduced risk and higher rates of acceptance.

In April 2020, the startup obtained $6.5 million in investment and is now valued at $150 million. Three people told The Block that the acquisition deal with Apple had concluded earlier this week. Credit Kudos's Website Terms of Use link is now redirecting to Apple's Terms of Use.

It is not clear what Apple has planned for Credit Kudos, but it is possible that the company's technology could aid Apple with the launch of Apple Card in the UK. The UK is one of the most important markets for Apple, with the country having the largest number of Apple Stores outside the United States and China.

Apple's main credit product, Apple Card, is only available in the United States, but Credit Kudos's technology is based on the UK's open banking framework. It is possible that Apple could modify Credit Kudos's technology to work with the U.S.'s growing open banking sector.

It would not be easy for Apple to launch the Apple Card internationally because of the different credit markets and financial regulation in different countries. Credit Kudos could be the chosen credit checking platform for the UK, as Apple would likely need to seek specific solutions to make lending decisions in each country. The launch of the Apple Card in the UK could be delayed as the company integrates the Credit platform with a new international variant.

It makes sense for Apple to expand into overseas markets after the success of the Apple Card in the U.S. Tim Cook, Apple's CEO, confirmed his interest in launching the Apple Card internationally during his visit to Germany in 2019. The launch of the Pay Card in the UK in 2020 is thought to be an attempt to establish a foothold in the region before Apple does.

Smaller businesses are often acquired by Apple to bolster its technologies and expertise. Many acquisitions go on to be key parts of Apple's ecosystems. In the past few years, Apple has acquired businesses such as Drive.ai, a company that makes self-driving cars. Dark Sky and Workflow were folded into new Apple apps. A new classical Apple Music app is set to launch this year and will be integrated into existing Apple products.