Project Breakout Is Apple’s New Multi-Year Venture

Apple is actively working on Project Breakout. It is new technology and has the infrastructure to bring a wide spectrum of consumer financial services in-house, minimizing its reliance on third-party providers.

Transaction processing, risk estimation, credit checks, fraud investigation, and other customer service operations are reported to be included in the multi-year strategy. The internal codename “Project Breakout” has been applied to a portion of the project.

The initiative is now focused on Apple’s future finance developments rather than existing ones. For services linked to Apple Card and its financing programs, Apple relies on third-party financial organizations such as Goldman Sachs. 

Project Breakout Will Change Apple’s Dependence On Financial Organizations

In intraday trading on Wednesday, news of Apple’s suspected initiative pushed shares of Apple’s partners, including  Green Core Corp. and Card Dot Corp., down more than 8%.

The initiative would help Apple expand its financial services portfolio, which already includes the Apple Card, individual-to-individual Apple Pay payments, and Apple’s Wallet app.

While the move may minimize Apple’s dependency on third-party partners, it may also assist the business in expanding into new markets. Apple Pay, for example, is available in more than 70 countries and territories across the world. Apple Card, on the other hand, is limited to the United States.

Apple is also said to be working on related initiatives, such as a hardware subscription service that would allow people to pay monthly for iPhones. Analysts say the corporation should first rely on third-party financial partners to mitigate any possible dangers. 

In addition, the corporation is rumored to be working on a new “buy now, pay later” platform in collaboration with Goldman Sachs and Affirm subsidiary PayBright. In 2021, Apple introduced the Affirm program in Canada.

One of the initial components of “Project Breakout” may be a first-party credit card processing solution to replace CoreCard. According to a report published on Wednesday, Apple might use its first-party banking services to launch the suspected “buy now, pay later” scheme.