Apple has reportedly acquired London-based fintech start-up Credit Kudos based on multiple media reports.

The acquisition was first reported by The Block today (23 March), based on three sources familiar with the deal that took place earlier this week. While neither company has confirmed the deal, Credit Kudos was reportedly valued by Apple at around $150m.

Credit Kudos develops technology that analyses people’s banking transaction history to help lenders estimate credit scores and make better financial decisions. It also has a service that help those seeking loans to evaluate their own credit scores before applying.

The start-up was founded in 2015 by Fred Kelly and Matt Schofield to enter the fast-growing open banking industry, which involves third-party consented access to personal bank accounts to analyse data and make payments on behalf of the users.

The open banking space has seen a surge in acquisition activity in recent years, especially in Europe, where fintech regulation rules have been relaxed since 2018. Last June, Visa snapped up Swedish open-banking start-up Tink for a whopping €1.8bn to make inroads in the industry.

Credit Kudos had its most recent funding round in April 2020, just after the Covid-19 pandemic hit, when it raised £5m in Series A funding led by London-based technology investment firm AlbionVC.

According to figures reported by CNBC, reported losses of £4.5m in 2020 – more than double the amount it reported in losses in 2019.

Apple generally does not reveal details of acquisitions publicly because it buys a company “on average, every two to three weeks” according to CEO Tim Cook. It is not clear what the software giant’s plans are with Credit Kudos, but it is likely a steppingstone into the open banking space.

Last month, Apple announced a new Tap to Pay feature enabling businesses to accept contactless payments using an iPhone and a partner-enabled iOS app. Irish-founded fintech Stripe will be the first platform to introduce the feature.

Apple’s current financial products include its mobile wallet Apple Pay as well as an Apple Card that has been available in the US since 2019. It is yet to be launched internationally.

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