Apple is facing a lawsuit from Texas-based Fintiv, which alleges that the company misappropriated proprietary technology to develop its mobile payment service, Apple Pay. The complaint, filed in federal court in Atlanta and made public on 7 August, claims that Apple used innovations originally created by CorFire—a company Fintiv acquired in 2014—to power Apple Pay across iPhones, iPads, Apple Watches, and MacBooks.
According to the filing, Apple held several meetings with CorFire in 2011 and 2012 under nondisclosure agreements, with the intention of licensing CorFire’s mobile wallet technology. However, instead of finalising a deal, Apple allegedly hired CorFire employees and used confidential information to launch Apple Pay in 2014, first in the United States and later internationally.
The lawsuit also alleges that Apple engaged in an informal racketeering scheme, using Apple Pay to direct transaction fees to major banks such as Bank of America, JPMorgan Chase, and Citigroup, as well as payment networks including Visa, Mastercard, and American Express.
Fintiv’s legal team described Apple’s conduct as “corporate theft and racketeering of monumental proportions,” claiming the tech giant has earned billions from Apple Pay without providing any compensation to Fintiv. The suit seeks both compensatory and punitive damages under federal and Georgia trade secret and anti-racketeering laws, including the Racketeer Influenced and Corrupt Organizations Act (RICO). Apple is listed as the sole defendant.
This lawsuit follows another legal challenge Apple faced in June, when shareholders filed a proposed securities fraud class action accusing the company of downplaying the timeline for integrating advanced artificial intelligence into its Siri voice assistant—a delay that allegedly affected iPhone sales and its share price.
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