Apple, Uber, Amazon, Venmo, Robinhood, eBay, and other tech giants have expanded their operations into credit card business. Let’s face it the society loves to shop and pay later. So what is the vision with this acquisition in their office?

First thing first, the tech companies make enough money that they are able to loan money to public and have them receive benefits. Amazon gives discounts if you use their cards for shopping on their platforms and stores along with Venmo and Acorns give discounts or money back for certain partnerships the consumers use their cards.

The operation of credit cards bring the tech giants with more power and freedom to allow their users to be their customers for longer term than being with traditional banks. The tech company will have another option to make money by loaning money and receiving interest on their loans. The infrastructure of using credit cards and housing is based on loaning money.

It wouldn’t be surprising if Amazon jumps into the housing market and loan money for real estate purposes. This option brings the tech giants into breaking down the traditional companies and making the regular banks to adjust their mission and vision of their corporation.

It shows that the more the tech companies moving into loaning business they are able to give more back and making the traditional process look weak and a burden for younger generation. Most of the tech corporation audiences are younger generation who are looking to keep track of their finances and expenses instantly on an app.

For someone as old as a boomer it would be tougher to see them use an app to track their finances. They are conservative with their social and financial perspective at that age since they earned it the hard way. This makes sense and the boomers are more comfortable that way no matter what.

For youth generation it’s a new perspective of doing business and shows the tech companies are after the new trend of the society which is why people are talking tech these days and are looking for the next app to jump the wagon on.

With this acquisition and move by the tech companies into loaning business, they are making a statement that loaning money can be done by us rather than banks if you need help. Therefore, banks are becoming vulnerable to fintech and regular tech companies which it would be tough to see them keeping all their branches within a decade later.

All in all, tech corporations are showing a strength that their products are their main reason why they have gotten this far and why they can make a statement to provide traditional business to public as well. This is a typical tradition that robber barons were famous for and making entry into other industries perspectives!