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Apple Pay Later turns Apple into a full-fledged lender

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With a limited launch today of a new service called Apple Pay laterApple will now give money to users directly through the Wallet app on devices like the iPhone.

We first heard about this service in 2021 and it was officially announced at the company’s Worldwide Developers Conference in June 2022. However, it has faced several delays since the rollout of iOS 16 began last September.

Apple is now “inviting select users to access Apple Pay Later Preview.” The service will be rolled out to everyone “in the coming months.”

Those who can use it now can apply for a $50 to $1,000 loan, but they will only be able to spend the borrowed money at merchants (online or otherwise) that accept Apple Pay.

The loan payments will be divided into four payments, and users will have six weeks to repay the loan without interest. According to Apple, payments must be made using a debit card.

When users initiate a loan, Apple performs a soft credit check before making an offer. A screen with a payment plan will appear on the user’s device. In addition, the Wallet app has a screen that allows users to track their loan balance and future payments on a calendar.

Apple Pay Later builds on Apple’s existing relationships with Mastercard and Goldman Sachs; the service is “enabled through the Mastercard Installment Program,” which Apple says allows the service to work immediately with merchants that already accept Apple Pay. “Goldman Sachs is the issuer of the Mastercard payment data used to make purchases through Apple Pay Later,” Apple says.

However, Apple created a subsidiary to fund Apple Pay Later credits – something it hasn’t done before with Apple Card or Apple Pay. This subsidiary will start reporting loans to the US credit bureaus this fall.

As smartphone adoption has slowed somewhat of late, Apple has spent several years moving beyond profits based on hardware sales, diversifying into a wide range of services such as streaming entertainment, cloud backup, fitness and financial products.

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FDIC should act like a real insurer

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Bank counter in Westminster, Colorado on November 3, 2009


Photo:

Rick Wilking/REUTERS

The spectacular collapse of the Silicon Valley bank demonstrated a fatal flaw in the American deposit insurance system: the $250,000 FDIC coverage limit seems insufficient to prevent a bank run. But raising or eliminating this limit, some commentators have suggested, would create incredible moral hazard. Instead, the FDIC should mitigate risk, as an insurer would, by pricing and apportioning it.

Deposit insurance is the backbone of the American financial sector. In our fractional reserve system, banks lend almost all deposits. If all depositors show up and demand their money at the same time, there won’t be enough to satisfy everyone. Even a rumor can start to spread, especially given how quickly ideas can spread in the age of Twitter.

Bank deposit insurance reduces the chance of run-ins, giving insured depositors peace of mind, but many depositors hold funds in excess of the FDIC deposit insurance limit. Businesses in particular often need to keep more than $250,000 in the bank at any given time in order to pay payroll and other bills. If their bank seems unstable, these depositors have every reason to withdraw their money.

This is exactly what happened to the Silicon Valley bank. The media expanded on the fact that more than 90% of SVB deposits were not insured; the business realized the high risk and fled, pulling out $42 billion in one day. The FDIC took responsibility and decided to cover all deposits anyway, but the introduction of this rule would remove almost all responsibility for minimizing risks from banks.

There is a simpler and safer solution. The FDIC should encourage—or require—banks to distribute the amounts of money they hold in excess of insurance limits to other institutions. Suppose Jane deposits $500,000 in Regional Bank A and Joe deposits $500,000 in Regional Bank B. If the FDIC had a system whereby Bank A exchanged half of Jane’s deposits for half of Joe’s, this would eliminate any uninsured risk to both clients without increasing risk. or a substantial cost to any bank. And all of this allows Jane and Joe to access their funds from their main bank using their existing debit cards and checkbooks.

The FDIC would not have to start from scratch to build such a system. Several large firms and several fintech startups are already helping depositors increase FDIC coverage by spreading their deposits across multiple FDIC-insured banks, in what is called a “sweep” or “sweep.” mutual deposit agreements. The problem is that few people know about these systems or use them.

In fact, there are already many ways that savers can insure over $250,000 under existing FDIC rules. This limit only applies to each contributor for each category of property – clients receive $250,000 for each of 14 account types they can keep in the bank, and if there are several beneficiaries of the accounts, each of them gets that much. A married couple can receive up to $1 million by dividing their money into separate accounts for each spouse and a joint joint account. This complexity of joint accounts and pass-through insurance likely meant that SVB actually had many more insured deposits than the reports claimed. Unfortunately, few people know about these aspects of deposit insurance.

This is where the FDIC can step in. It has unique information about deposits, their structure and insurance status in all 4,237 banks it serves. The FDIC knows when depositors and banks can benefit from the distribution of funds under a mutual deposit agreement. This could encourage banks to use this practice by setting a threshold for uninsured deposits, above which institutions would have to pay higher premiums, unless they use mutual deposit agreements to mitigate their risk. If the FDIC wanted to be more assertive, it could include reciprocal deposit agreements in its oversight expectations for risk management. Banks that have not used the tools available to reduce uninsured deposits will face enforcement action.

This approach is much preferable to increasing or eliminating the deposit insurance limit, which would entail moral hazard and cost to taxpayers. In addition, the FDIC will eliminate the need for bank bailouts. And that would give regional banks, which provide important local services and spread risk throughout the system, a fighting chance.

Regulators usually resort to proven tools, whether or not they have been successful in the past. Might be worth trying something different this time.

Mr. Brooks is a former Acting Comptroller of the Currency and a member of the Board of Directors of the FDIC. Mr. Henderson is a professor of law at the University of Chicago and a visiting fellow at the Hoover Institution.

Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Canteen Elephant: Startup Makes Giant Meatballs

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AMSTERDAM — Throw another mammoth on a barbie?

An Australian company on Tuesday removed the glass cap from a meatball made from lab-grown, cultured meat using the genetic sequence of a long-extinct pachyderm, saying it was meant to spark public debate about the high-tech delicacy.

The launch at the Amsterdam Science Museum took place just a few days before April 1st, so there was an elephant in the room: is that true?

“This is not an April Fool’s joke,” said Tim Noakesmith, founder of Australian startup Vow, “this is real innovation.”

Cultured meat, also called cultured or cell meat, is made from animal cells. Its production does not require the slaughter of livestock, which advocates say is better not only for the animals but also for the environment.

Vow used the mammoth’s publicly available genetic information, filled in the missing pieces with the genetic data of its closest living relative, the African elephant, and placed them in a sheep’s cage, Noaksmith said. Under the right conditions in the lab, the cells multiplied until there were enough of them to roll into meatballs.

More than 100 companies around the world are working on cultured meat products, many of them start-ups like Vow.

Experts say that if the technology is widely adopted, it could significantly reduce the environmental impact of global meat production in the future. Currently, billions of acres of land are used for agriculture around the world.

But don’t expect it to be on plates all over the world anytime soon. At the moment, tiny Singapore is the only country that has allowed the consumption of cell-based meat. Vow hopes to sell its first product there, farmed Japanese quail meat, later this year.

The mammoth meatball is a one-of-a-kind item that has not even been tried by its creators and is not planned to be commercially produced. Instead, it was presented as a source of protein that would make people talk about the future of meat.

“We wanted people to be excited that the future of food will be different from what we had before. That there are things that are unique and better than the meat we definitely eat now, and we thought the mammoth would be a conversation starter and get people excited about this new future,” Noakesmith told The Associated Press.

“But also the woolly mammoth has traditionally been a symbol of loss. We now know that he died from climate change. And so we wanted to see if we could create something that would symbolize a more exciting future that would be better not only for us, but for the planet,” he added.

Seren Kell, manager of science and technology at the Good Food Institute, a non-profit organization that promotes plant-based and cellular alternatives to animal products, said he hopes the project will “open up new conversations about the extraordinary potential of cultured meat to produce more sustainable food.” reducing the climate impact of our current food system and freeing up land for less intensive agriculture.”

He said the giant project, with its unconventional source of genes, was an exception in the new meat farming sector, which usually focuses on traditional livestock production of cattle, pigs and poultry.

“By growing beef, pork, chicken and seafood, we can make the biggest impact in terms of reducing emissions from traditional livestock production and meeting the growing global demand for meat while meeting our climate goals,” he said.

The giant meatball on display in Amsterdam, somewhere between a softball and a volleyball, was for display purposes only and was frosted to ensure it wouldn’t get damaged on the way from Sydney.

But when it was cooked – first slowly baked, and then processed on the outside with a blowtorch – it smelled nice.

“People who were there said that the scent was something like another prototype we had made before, which was a crocodile,” said Noaksmith. gave it a completely unique and new flavor that we as a population haven’t felt in a very long time.”

___

Associated Press reporter Laura Ungar provided the information from Louisville, Kentucky.

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Nothing Phone (2) Leak Hints at OnePlus’ Spiritual Successor

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The Nothing (2) phone has been spotted on the government website of the Bureau of Indian Standards. 91 mobile, a telephone blog dedicated to the local market. This means that production may be completed and a launch may be imminent.

This is good news for anyone interested in Nothing Phone, not just Indian fans, as Nothing CEO Carl Pei has promised to bring the upcoming Nothing Phone (2) to more markets, making the US a real priority this time, not just a latecomer. . round beta testing area.

We recently heard from chatty Qualcomm executives that Nothing Phone (2) will likely use the company’s late 2022 flagship mobile platform, the Snapdragon 8 Plus Gen 1. Gen 2, but the latest chipset is powerful enough to power phones like Galaxy Z Fold 4 portable tablet. This makes it a major upgrade for Nothing.

Nothing Phone (1) with Nothing Ears (1) (Image credit: Peter Hoffman)

The 91Mobiles leaks also suggest that the phone could get 12GB of RAM as standard. Combined with a fast chipset, this would make Nothing Phone (2) a serious performer. If Nothing can deliver the phone at the bargain price of the original, that will make it an interesting contender.

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