Apple acquired Credit Kudos, a UK open banking startup company that helps people make better decisions when purchasing products and services. The deal was reportedly closed this week, and the company was reportedly valued at about $150 million.
According to the three people familiar with the details of the accusations and the deal, Apple may have purchased Credit Kudos for about $150 million. While the details of the deal remain private at the moment, the company has already changed its Terms and Conditions, directing to Apple’s website (via The Block).
Credit KudosCredit Kudos offers a credit scoring system that aims to provide fairer credit for all, helping people access responsible finance that is affordable and lower risk. The company also provides these insights to businesses through an API, which can offer predictive insight by combining the transaction and loan outcome data. Credit Kudos raised £5 million ($6.5 million) in April, 2020.
The reason why this acquisition is making headlines is because of the fact that Apple Card is currently only available in the US, and it’s been rumored for a while that Apple is looking into expanding into other markets, such as Canada, and the UK. Assuming that Apple wants to hand out credit, it’s safe to assume that it wants to make lending decisions to reduce the risk in each country, and it makes sense for Apple to buy an already established player, where it might also want to operate in the near future.
It’s not clear what Apple intends to do with Credit Kudos, and we can only speculate at this time. Tim Cook, the CEO of Apple, has previously confirmed his interest in launching Apple Car internationally in more markets, but it hasn’t made any official move just yet since launching in 2019.