Tech Giant Apple is buying the British startup Credit Kudos. Sources say the deal to acquire the fintech was finalized early last week. The deal is said to be worth approximately $150 million.
An Apple spokesperson said Apple “buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.”
Credit Kudos is based out of London, and the company develops software that utilizes consumer banking information to dive deeper into a loan applicant’s credit background. The deal could seriously impact some of the British firm’s clients, including Fronted and Curve.
The startup competes against large credit reporting agencies such as TransUnion, Equifax, and Experian. The company had been disclosing information about a potential sale in September, but things have moved along more quickly than expected.
Credit Kudos operates in an offshoot of fintech called “open banking.” It’s when a third-party firm gets consent to link to a bank consumer’s account and acts as an agent to make payments for them. The trend has had increasing momentum in Europe since 2018 and increases competitiveness in the payments industry.
Apple hasn’t disclosed its plans for Credit Kudos. Apple, the world’s most valuable company worth of $365.8 billion as of 2021, has made headways further into the financial services industry in recent years, particularly through its partnership with Goldman Sachs for Apple Card and its Apple Pay mobile wallet.
The last time Credit Kudos had received capital funds was in early 2020. The firm had $5.9 million in losses in 2020.
Investors like Silicon Valley startup Plaid have taken an interest. Plaid is a San Francisco fintech that builds data transfer networks that facilitates connecting users’ bank accounts with third-party apps.
Last year, Plaid was valued at $13.4 billion during a funding round. The company had an agreement for Visa to buy the firm, but an antitrust lawsuit halted those plans. Visa later bought one of Plaid’s competitors, Tink, for $2.1 billion.