Apple sends tech rumours into overdrive acquiring little-known Mobeewave

Fintech eyes have turned to Apple once again as the US tech giant is reported to have acquired Montreal-based mobile payments technology Mobeewave for a ‘reported $100 million’.

This weekend, Apple issued its customary notice to Bloomberg News, confirming that it had ‘acquired a smaller company’, but stating that it would not discuss any terms related to its deal.

Dismissing Bloomberg’s pleas for more information on its latest buy, Apple has sent Fintech rumours into overdrive as to why the ‘Big 5’ player would acquire an unproven start-up.

Mobeewave brands itself as the latest ‘payment disruptor’ in Near Field Communications (NFC) technologies, with the start-up seeking to lead its field in North American contactless payment solutions.

Apple already has built-in NFC functionalities within its mobile phone devices, allowing its customers to make contactless payments with retail merchants.

However, Mobeewave claims to have developed a seamless NFC software solution that would require retail merchants no use of any hardware devices to read credit/debit card payments. 

The benefits of a successful integration could see Apple simply convert its mobile devices into straightforward payment terminals for retail merchants, with Apple securing a vital edge over fast growth Fintech incumbents such as Square and iZettle seeking further growth in the US market. 

During lockdown, technology observers highlighted North America’s lag on adopting end-to-end contactless payment solutions, with US penetration lying significantly behind Europe and Asia.

Dominating contactless payments for the US market is recognised as a further multi-billion objective for Apple leadership, who in 2019 launched its digital credit card services with Goldman Sachs as a new Apple Pay functionality.

To date, Apple CEO Tim Cook has remained cautious on his firm’s Fintech ambitions, stating last year that the firm technology resources would be concentrated on wearables and the launch of a new iPhone over pursuing growth in the financial services sector.

At present, little is known with regards to Mobeewave’s actual capabilities, and whether its technology can be scaled up to service Apple’s behemoth mobile network.

The Canadian start-up has raised $25 million to date in venture capital, with Samsung Ventures listed as one of its investors.

Cynics point that the Cupertino giant may have simply spent $100 million in chump change of its +$1 trillion net worth to impede any contactless payment advancements from its competitors.

Alongside its Big-5 counterparts, Apple’s M&A strategy is currently being probed by US senators, as Congress holds antitrust hearings on the impact of Big Tech’s control on markets and competition.  

Responding to senators concerns, Tim Cook acknowledged Apple’s aggressive acquisition strategy of smaller tech firms, but defended his company’s strategy stating that “Apple buys innovation, not competitors”.