Apple's credit card is a competition for the banks that built Apple Pay



The new Apple credit card, announced Monday by the company, does more than give users a cash back and refreshing iPhone features. He also opposes Apple to the same big banks she needed to launch Apple Pay more than four years ago.

The Apple Card, backed by Goldman Sachs, has no fees and a "daily" cash rebate of 2% when someone uses it to make a purchase through the Apple Pay payment service. Apple Pay is an increasingly popular method of payment for applications and websites. It can also be used to make payment payments over a telephone line in physical stores.

This means that Apple will now compete with banks like Chase and Citi to get iPhone users to choose the Apple card as the default card for Apple Pay payments.

"They have used a whole ecosystem of banks to create Apple Pay and make the decision, and they are now making the conscious decision to compete directly with these partners," said Jordan McKee, research director at 451 Research.

Apple's decision is just the latest example of the biggest players in the technology sector taking advantage of their dominant position among modern consumers in the cooperation of the titans of traditional industries. Often, this cooperation turns into competition.

The Apple Card will also allow iPhone users to track their weekly and monthly expenses across all categories of shopping. At least for now, these features do not seem to be open to iPhone users using the card from another bank.

"They're not just competing in Apple Pay, but they're [also] open features only for the Apple Card that other banks can not exploit, "McKee said.

It's still hard to want to shed tears for the big American banks. They usually save a lot of money by selling your data so that marketers have a new contact to peddle their services or merchandise. They have also collectively made a fortune by charging sometimes usurious penalty interest rates and other late fees.. At least in the beginning, it seems that Apple is attacking directly to the industry giving priority to confidentiality, without sharing or selling data, as well as to biometric authentication. The card also has no fees and no penalty interest rate.

For years, Apple played down the idea that it would one day compete with banks. After all, Apple needs these credit cards so consumers can use Apple Pay. Apple is now a competitor of financial services. And we have the impression that it is only the beginning.


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