According to persons close with the situation, Apple has bought the British financial start-up Credit Kudos. The purchase was closed early this week, according to the sources, who preferred to remain anonymous in order to disclose commercially sensitive material. According to one of the sources, the acquisition values Credit Kudos at roughly $150 million.
The Block, a crypto-focused media organization, broke the story first. According to an Apple representative, the company “buys smaller technological businesses from time to time, and we normally do not share our purpose or ambitions.” When CNBC contacted Credit Kudos, the company did not respond promptly.
Credit Kudos, based in London, creates software that leverages consumer banking data to do better informed credit checks on loan applications. It is a competitor to the major credit reporting companies, such as Equifax, Experian, and TransUnion. The transaction might have major consequences for some of Credit Kudos’ clients, including the London-based fintech businesses Curve and Fronted.
The startup operates in the new fintech field known as “open banking,” in which third-party organizations securely link to people’s wallets to extract information in order to make transactions on their behalf, provided they have approval to do so. Credit Kudos has been in talks about a potential sale since September, according to one of the sources who spoke with CNBC.
The trend has gained traction in Europe in recent years as a result of fintech-friendly legislation implemented in 2018 with the goal of increasing competition in the payments business. Plaid, a Silicon Valley start-up, was valued at $13.4 billion in a capital round last year, indicating that it has piqued the curiosity of investors. Plaid had previously agreed to be purchased by Visa, but that deal was canceled after the US government filed an antitrust complaint. Tink, a Swedish firm that competes with Plaid, was later purchased by Visa for $2.1 billion.