After disrupting the PC/mobile/tablet industry, Apple is now entering into the world of credit cards. Apple today announced its new credit card, in partnership with Goldman Sachs & Mastercard. As usual, with Apple Card, Apple is attempting to revolutionise the way we use credit cards.
Here are some of the highlights of the card:
- No Card Number
- No annual fee, late fee, markup fee, over-limit fee
- Virtual Card: Works on Apple Pay network
- Physical Card: Made out of titanium & works on Mastercard Network
- Rewards: as cash equivalent to “Apple Cash” account.
- Reward Rate: 3% on Apple store txns | 2% on Apple Pay txns | 1% on Physical card txns
- Customer Service over Message.
- Launches in U.S.A this summer 2019
Well done Apple! For those premium customers who just care about simplicity of using a credit card, now Apple has the solution.
Expected After Effects
The launch of Apple Card by Apple is just like a doomsday for the premium credit card issuers, especially American Express. Apple users would tend to use Apple Card over others cards for its ease of usage and other factors of being in the Apple ecosystem.
It may still not be a huge blow, at-least for now, as 1% rewards on non-apple pay spends is bit low for those who’re into travel rewards.
But for majority of iPhone users who’re not much into optimising rewards, they automatically go for Apple Credit Card for higher rewards on apple store spends, just like most of us want the Amazon Pay Credit Card even if we don’t plan to use it as a primary card.
Will it be launched in India?
Not for now! But technically, they can do so if they wish to, maybe after they get traction in US. Not to forget, even Apple Pay is not live in India.
Ideally, we can expect Apple to think about it after ~5 Years down the line, maybe faster if they found a good partnership bank to deal with in India. Also that’s when Indian credit card Industry will shine bright!
While we wait to see the Apple Card in India, for now, its wise to grab the Amex Platinum Travel card for FREE, before the Limited Period offer ends.
What’s your take on the Apple’s new credit card offering? Feel free to share your thoughts in the comments below.