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Apple CEO Tim Cook launches the Apple card.
Screenshot of Jessica Dolcourt / CNET
The new novelty in payments is … the plastic?
Apple introduced Monday the Apple Card, a credit card that exists both as a virtual card in Apple's Wallet app and as a physical card (to be fair, it's titanium, not plastic). Apple's card comes after PayPal-owned PayPal, Square and Venmo digital money companies have all introduced their own credit, debit and physical prepaid cards in recent years.
Certainly all the excitement of good, reliable maps means that Google and Samsung will not be too far behind, trotting in their own Google Pay Card and Samsung Pay Card, right? Well, not so fast.
Clear the mystique Apple, and you will end up with a credit card with features disappointing and may not attract the most sophisticated consumers, according to several payment experts. This means that its major payment competitors will probably not rush to offer competing cards.
"I doubt that Google and Samsung are losing much sleep with this card," said Ted Rossman, an analyst at CreditCards.com, a Bankrate-based card comparison site.
Look at this:
The Apple Card is the new credit card without Apple late fees
1:52
The Apple card comes at a time when the adoption of mobile payment services like Apple Pay has stagnated for years. Most US customers opt for simpler cards or cash instead. The lack of ubiquity is a major obstacle to mobile payments because many customers prefer to pay at the checkout with what they know to be accepted, and no longer ask if a mobile option is available.
The physical Apple Card could help solve this problem because cards are accepted in almost any store. The card is an acknowledgment from Apple that mobile payments are not yet understood. According to a poll by PYMNTS.com, less than a third of iPhone users have already used Apple Pay at least once.
The Apple card also illustrates how the technology industry must operate in the present while trying to usher in the future. Technology companies such as Amazon's construction stores are further proof that consumer habits take time to change and that there is still much to be gained from old-fashioned, non-digital methods.
No Google or Samsung
Considering a potential Google or Samsung card, payment experts have mostly faced challenges for both companies. The credit card industry is highly regulated and highly competitive, preventing technical players from immersing themselves. In addition, neither company has the same brand power powered by fans as Apple or many of its own retail stores, making them even harder to create. waves of payments.
A look at the Apple card in the Wallet app.
Apple
"My instinct is that they would not necessarily intervene if they did not see the success of this Apple operation," said Matt Schulz, analyst at CompareCards, a comparison site. of cards belonging to LendingTree.
But Rivka Gewirtz Little, an analyst at IDC, said she would not be surprised to see Google and Samsung show their own cards soon, as tech companies are increasingly looking for ways to to enter the financial world and create more cards. services to get people to spend money.
"I do not see why they would not do it," she said. "I do not think it's a mistake to do it."
Apple declined to comment on this story. Google and Samsung have not responded to a request for comment.
Look at this:
Apple Card FAQ: What you need to know
4:02
Apple Card: Meh
the Apple Card, which will be available in the US this summer, removes annual fees, late fees, over-limit fees and international taxes – but it will increase your interest rate if you pay late. The card also offers daily cash rewards, with a 3% refund when making a direct purchase from Apple, 2% when paying via Apple Pay, and 1% when paying with the card.
The company has also touted the security features of the Apple Card, with each digital payment being authorized with the help of Touch ID or Face ID and a one-time security code. Apple will not collect customer data either to know where they buy, what they buy or how much they spend. Apple has partnered with Mastercard and Goldman Sachs to offer this card.
Mastercard spokeswoman Chaiti Sen said her company was hoping to later create more digital cards like Apple Card, but she confirmed that Mastercard currently only works with Apple on such a concept.
Several payment analysts have found that Apple Card features are far from editable and that other existing cards offer similar or better benefits. The lack of a signup bonus, typical of credit cards nowadays, was considered a missed opportunity.
"Much of the Apple Card looks like a series of half-measures," Rossman said. "I'm surprised they did not get involved in anything."
Apple clearly wants to use the card to encourage more people to use Apple Pay and build loyalty to its ecosystem of products and services. These experts did not think that was enough to do it. Given this, the pressure from Google and Samsung on their own cards is not as great as if Apple had presented a card that could upset the card business.
"This is certainly not enough to blow people up," said Mr Little about Android users. "This could be enough to get iPhone users to stay a little longer."
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