Apple Card looks like the most attractive credit card on the market at the moment, but it won't always be that way, predicted Rob Enderle, principal analyst at the Enderle Group, an advisory services firm in Bend, Oregon.
Apple Pay's success has encouraged the company to partner with Goldman Sachs to launch its own credit card service called Apple Card.
Apple says it won't get information on what you buy with the card or where or for how much. German challenger bank N26 launched its premium metal card in 2017, and Revolt has long dabbled with the "credit card as status symbol" marketing approach with its metal card for premium users in August 2018.
Such an arrangement indicates that there may be no need for applicants to submit address or salary proofs. The announcement followed reports in February that the tech titan had been working with investment bank Goldman Sachs on a joint credit card. That means no late fee, no annual fee, no worldwide fee and no over-the-limit fees. Its goal is to provide interest rates that are among the lowest in the industry. If customers miss a payment, they will not be charged a penalty rate.
"Should this card launch in the United Kingdom it would not boast these same rewards without Apple making a considerable loss". Customers receive 2 percent cash back on purchases made with Apple Pay and 3 percent cash back on purchases made on Apple products.
He points to the Citi Double Cash card, which offers an easy-to-use 2 per cent back on any purchase.
"Apple customers will react very favorably, and it could even draw non-Apple customers over to the Apple platform", he added. Daily Cash is unlimited, and can be used in any way you like, whether that's paying off your balance or making new transactions. However, since Facebook have already made moves to becoming the next biggest mobile payments provider for social media users, Apple have now entered the forway to add even more competition to the market.
Brear also told Techworld that he believes "Apple has been looming over the banking battlefield for over a decade now but with their recent announcement regarding Apple Pay conducting more transactions than PayPal, and now the reveal of the Apple Card, they might finally be living up to the hype".
Apple said Apple Card will be available in the U.S. this summer and didn't have any further details to share. Other companies often make users wait a statement cycle or until the bill has been paid. "Apple Card is created to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance". That's why I joined forces with Apple. According to Apple, those are the lowest rates in the industry.
For sure, turning the small amounts of fees from the card service into a huge revenue source is a long-term business. But it is not to be underestimated. But Apple Card can help in boosting iPhone sales as it can attract consumers to switch to iPhone to avail themselves of Apple's financial service offerings.
We first heard rumors about Apple's dabbling in games earlier this year, and it looks pretty darned close to the "Netflix of games" we predicted at the time.
Here's a rundown on what Apple unveiled - what's good, what's not so good and what we still don't know.
That's a win-win deal for Apple and its users.