Stock Trading Feature For iPhones? A Financial Service Apple And Goldman Sachs Almost Delivered

Apple Inc's AAPL plans to introduce a stock trading feature for iPhone users were reportedly in the works as equities surged in 2020, aligning with the rise of trading apps like Robinhood Markets, Inc HOOD Robinhood. 

While details of the project have emerged, it was put on hold last year due to market downturns. 

The feature, which remained undisclosed until now, aimed to expand Apple's financial offerings with the support of Goldman Sachs Group, Inc GS, following their collaboration on an Apple credit card, buy now, pay later loans, and a high-yield savings account. 

However, it appears they had to pause the project as concerns grew over potential user losses in the stock market, leading the companies to pivot towards savings accounts with higher interest rates instead, CNBC reports.

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Apple and Goldman Sachs began discussions during the trading frenzy in 2020, with plans for the investing feature scheduled to launch in 2022. One proposed use case involved enabling iPhone users to invest in Apple shares directly. 

However, as market conditions shifted, they prioritized savings accounts, which offered a safer financial product. 

The current status of the stock trading project is uncertain, as Goldman Sachs has retreated from most of its consumer-focused initiatives. 

Nevertheless, sources suggest that the infrastructure for the investing feature is essentially prepared should Apple choose to proceed.

The concept of an Apple stock trading feature would have entered a competitive market, including platforms like Robinhood, SoFi Technologies, Inc SOFI, and Block, Inc's SQ Square, along with traditional brokerage firms like Charles Schwab Corp SCHW and Morgan Stanley's MS E-Trade. Stock trading has become a way for financial firms to engage customers, a strategy Apple also pursued. 

However, this move could draw regulatory attention, given the ongoing scrutiny of Apple's App Store practices and concerns about gamification in financial markets.

While Apple's plans for a stock trading feature remain uncertain, other tech giants have ventured into the space. Elon Musk's X, formerly Twitter, is exploring stock and cryptocurrency trading through a partnership with eToro. 

PayPal Holdings, Inc PYPL also considered entering stock trading but later shifted focus to its core e-commerce business.

Price Action: AAPL shares traded lower by 0.25% at $178.62 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.