Apple buys UK-based open banking startup Credit Kudos

The deal could be a precursor to Apple Card's arrival in Europe.

The Apple logo is displayed at an event at their headquarters in Cupertino, California, U.S. September 10, 2019. REUTERS/Stephen Lam (Stephen Lam / Reuters)

Apple has acquired an open banking and credit reference company called Credit Kudos. A terms of use page on Credit Kudos' website, which was updated on March 21st, notes that the company is a subsidiary of Apple and its policy link now redirects to Apple's website.

According to The Block, the acquisition closed earlier this week and valued Credit Kudos at $150 million.

Credit Kudos is essentially a credit check agency that claims to provide a more rounded picture of a person's financial health and creditworthiness than other approaches. Its API taps into the UK's open banking platform to analyze bank account data. It aims to help banking providers make faster and better decisions when people are seeking loans or other financial services.

The deal could pave the way for Apple Card to arrive on the other side of the Atlantic. Apple's credit card has been available in the US since August 2019. The API could help the company determine whether to approve a UK resident's application for an Apple Card. It may also be used to guide Apple's decision-making process when choosing whether to let customers pay for products over a number of installments.