Apple Card Said to Launch as Early as First Half of August

[Robert.Walter]

If/when it launches in Europe it’ll be interesting to see what rewards they offer given almost all of our credit cards now have no real incentives on the back of the interchange fee cap...

That’s what I’m wondering too. But given that European banks generally charge an annual fee for a card, and charge fees up the wazoo for foreign transactions, make it difficult to get a card if not from your own bank, rape you if it’s a prepaid card, and still generally do NOT offer Apple Pay, the banks have created a big space for Apple to enter with a free card offering Apple Pay. If Apple offers a reward, or decent free buyers/travel insurance, customers will snap these up.

Even if Apple (possibly Goldman) breaks even on the card, as a loss-leader, Apple will be ahead by building customer loyalty to the iPhone, and Goldman will have the chance to sell other banking, finance, investment products to those customers.

 

[Robert.Walter]

You'd think they'd get it out in time for people to buy their new iPhones with it.

Sadly, rest of the world will probably suffer the same fate as Apple Cash.

Perhaps ACardwill be an enabler for ACash to be rolled out worldwide.

In the US, Cash is kinda clunky needing both Discover and Green Dot Bank to transfer internally and externally. Clearly Discover (missing in most of Africa, Mid East, part Eastern Europe) and Green Dot (US only with poor ratings) don’t have a full international presence. Goldman wanting to access retail customers, has incentive to use Apple Card to access attractive customers in new markets (I could see even in Africa the possibility for GS to enter micro finance if they go full broad spectrum.)

But for the first world, Apple building on MC and GS so more customers can easily get a card, will make Apple Cash much more accessible. I imagine for those that don’t yet have Apple Cash, they will be able to activate it at the sign up for Apple Card (If Apple has things well organized.)

Such a set up will allow many customers to get their first credit card, first free card, first Apple Pay card, and get access to Apple Cash. Plus rewards without nibbling fees.

My guess is it will really really be popular.
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“Highly anticipated”? By who?

Just another credit card.

Not at all.
[doublepost=1564210007][/doublepost]

I do. I live in the EU.

Totally. Even without the reward structure of the USA, just getting a free, fee free, Apple Pay and secure card is a huge win and attraction for consumers, many of whom only ever used cash or debit cards.

 

[Robert.Walter]

Considering how easy it usually is to report and handle fraud on your credit card, most efficient credit card users would rather optimize their returns than worry about privacy.

To each their own though

Bit most people just would be happy with a decent reward, not too much friction, and feeling more secure. Also the fun of a cool card and app. The vast majority of folks have no concept of card optimization. LoL many are on debit in or even cash.

Pick up just a chunk of those segments and it’s a big win.
[doublepost=1564211490][/doublepost]

Apple Pay still isn't as widespread as Apple would like it, so that 2% isn't that great of a reward. 1% on everything else? Make it 2% every non-Apple Pay purchase, 5% Apple Pay, and 8% Apple purchases. Also, lack of authorized users sucks. I get the high credit limit with my superior credit score and then add my wife with her decent one.

They will have big success even with out the silly 5% and 8% massively substrates you suggest. LoL.
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The 0 fees is pretty funny and shows how they are spinning the marketing.

1. If you miss a payment, we won’t charge you a late fee or apply a new high-interest penalty rate. However, you will continue to accrue interest on your balance at your regular interest rate.

If anyone thinks it’s a good idea to miss the payment because no late fees, they will still get penalized at their regular interest rate

Paying interest is never a fine thing, but there are folks that fall into that thru ignorance, bad planning, hardships, laziness, forgetfulness, etc.

That’s reality. So for folks that live that reality, not getting a 35 or 50$ late fee, or having interest rate go up by 1.5 to 2 times the normal rate, this is a big attractive win for them. Also the comfort of knowing this will be a big draw. This can’t be over emphasized.
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I read this news in Chrome and later got this ad in Youtube. Bless their hearts.

Chrome is not your friend.

 

[Robert.Walter]

And a late payment will still be recorded at the credit bureaus, thus affecting your overall credit score.

Can’t solve every problem in the world.

But at least some of the negatives fall away with the Apple Card.
[doublepost=1564212252][/doublepost]

I hope those of us running iOS13 Beta (Public version) will have the ability to also apply for the card. Id hate to have to wait till fill iOS13 comes out in September to get the new card.

You will. Don’t worry.

 

[Robert.Walter]

How do merchants store the credit card on file? This is needed for quick rentals like Hertz Gold or National/Enterprise Emerald Club.

Will the card offer usual benefits like doubling of the warranty up to 1 year, supplemental car rental insurance, purchase protection, etc. While these were a blanket offering for all MasterCards, that is no longer the case moving forward. Many cards are discontinuing these benefits later this year.

Aside from that, how does one make online purchases with this card if one does not have an iPhone? They are limiting themselves by trying to build a walled ecosystem.

The idea of the card is to make you loyal to your iPhone. And ultimate draw you deeper into the iPad, Mac, watch platforms. My guess is that once you have the card, it will be available as an option for you in Safari Autofill. We’ll see.

 

[PickUrPoison]

Bit most people just would be happy with a decent reward, not too much friction, and feeling more secure. Also the fun of a cool card and app. The vast majority of folks have no concept of card optimization. LoL many are on debit in or even cash.

Pick up just a chunk of those segments and it’s a big win.

I’m all for picking up some easy money, but I don’t travel for business anymore, so I don’t have the monthly spend that makes “optimizing returns” anything I’m willing to spend much time on.

To me, as you mention, the privacy/security is important, as is the convenience of a decent reward structure (that doesn’t constantly change). With no fees, Apple’s well positioned to gain traction with the unbanked/underbanked segment.

By offering low limits (even $100-200) to those with poor or no credit, with little risk they can establish a relationship via a meaningful milestone, i.e. first credit card, with those who could become much more valuable customers down the line. Even if that’s 10-20 years in the future. As you mentioned in a previous post, the global opportunities are wide-ranging in scope and magnitude.

 

[Robert.Walter]

How do merchants store the credit card on file? This is needed for quick rentals like Hertz Gold or National/Enterprise Emerald Club.

Will the card offer usual benefits like doubling of the warranty up to 1 year, supplemental car rental insurance, purchase protection, etc. While these were a blanket offering for all MasterCards, that is no longer the case moving forward. Many cards are discontinuing these benefits later this year.

Aside from that, how does one make online purchases with this card if one does not have an iPhone? They are limiting themselves by trying to build a walled ecosystem.

I’m also keen on knowing if there will be strong supplemental benefits. If not, this card may be useful for gas, restaurants and groceries, but major purchases will go on another card with protections.
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They’re only terminating rewards for new customers. If you already have the card you’re fine.
[doublepost=1564159582][/doublepost]

Omg we know! How many times is this going to be said? There are also better cars than a Smart Car, but people still buy it. Who caressss. Let people do what they want.

Jeeeeez.

Actually, the smart car was a 25 year serial flop. If it hadn’t been Daimler who could afford the losses it would have been dumped years ago. Planned volume was 200-250k per year. Never came close, added roadster to fill open line capacity, it flopped too. It was pulled out of USA. It’s sales expectations have been significantly downsized. Biggest success was Italy, after helmets were mandated for scooters, women who didn’t want to mess their hair, also parking issues like in Rome, bought ForTwos but afaik that has died down two.

Full disclosure: I had my Brabus Smart ForTwo for 10 years and loved it.

 

[Robert.Walter]

Oh I'm getting it as soon as it launches. It's definitely NOT just another card. Apple developed a system that's clean, organized, transparent, smart, private and secure, and has a pretty good rewards program. Depending on how much of a credit limit I'm approved for, I'm planning to close all of my other credit cards except maybe one or two, and just use this plus my debit card.

To preserve a higher FICO score, If your oldest cards are free, keep them. Cancel newer ones with annual fees. Also be careful to only use 10%, definitely less than 30% of the limit on your card. High credit utilization ratio hurts FICO.
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I’m all for picking up some easy money, but I don’t travel for business anymore, so I don’t have the monthly spend that makes “optimizing returns” anything I’m willing to spend much time on.

To me, as you mention, the privacy/security is important, as is the convenience of a decent reward structure (that doesn’t constantly change). With no-fees, Apple’s well positioned to gain traction with the unbanked/underbanked segment.

By offering low limits (even $100-200) to those with poor or no credit, with little risk they can establish a relationship via a meaningful milestone, i.e. first credit card, with those who could become much more valuable customers down the line. Even if that’s 10-20 years in the future. As you mentioned in a previous post, the global opportunities are wide-ranging in scope and magnitude.

I agree all, in addition, I think this is Goldman’s play, to get a customer and then offer them other services. By partnering with Apple, and leveraging Apple’s good name (frankly, most folks don’t know what a predatory investment bank GS has been, but if Apple and CFPB keep them on a short leash, what the hey?), GS has easy acquisition possibilities for interesting customer demographics. Everything from above average net worth older customers to young customers getting their first financial products. The marketing costs should be significantly lower than using any other channel.

I think citi really screwed up here. Real lack of imagination.

 

[ipponrg]

Hmm, I stand corrected then. Though if this card does launch in Singapore and is able to retain the same benefits, I do see myself picking it up because why not?

There really is no reason not to unless you get dinged for credit and you need to not be dinged.

I plan to get it just because I can. I’d use this strictly for Apple Pay for non travel / food expenses and Apple store purchases.

 

[Abazigal]

There really is no reason not to unless you get dinged for credit and you need to not be dinged.

I plan to get it just because I can. I’d use this strictly for Apple Pay for non travel / food expenses and Apple store purchases.

I have been using a debit card for the better part of my life. I am holding on a credit card partly because my bank kept pushing them so hard to me, but I find I hardly ever use it, because its benefits don’t match my lifestyle at all. For example, I simply don’t frequent the shops and eateries they offer rebates for. And yeah, I call their helpline once a year to get my annual fee waived.

I am probably “spending wrong”, and I suppose that with a little effort, I could find a card with the right rewards, but I just haven’t been bothered to. This may sound a bit ironic coming from someone who majored in finance, but I am happy keeping my money in an ordinary savings account and well, just spending with Apple Pay where I can and paying with cash / nets when I can’t.

That’s why l am attracted to the rewards of the Apple Card, as it doesn’t make a distinction about what I buy or where I buy from, and the rebates are instantaneous. It’s the sort of simplicity that I buy into the Apple ecosystem for. Likely not the best, but good enough in the areas that I do care about.

 

[otternonsense]

Username nomen est omen.

Given the us has the most competitive credit card market in the world wrt annual card fees, service fees, and rewards, much better than overseas markets that I am aware of, I think that if the Apple Card enters foreign markets with most of its features intact (I’m thinking rewards will be lower given that Europe by law limits transaction fee %, so there is less to reward from, that customers will flock to Apple Card if they can eliminate an annual card fee, etc.

What makes you think consumers in other economies care for the American credit card market at all? If you had the slightest awareness of how credit deals, benefits and features work outside of the US, you'd know customers aren't particularly interested in anything above a vanilla debit mastercard. "Competitive" credit cards is a non market in i.e. the EU.
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Who cares if no one outside of the U.S. isn’t interested? People outside of the U.S. can’t get it! Lol...

Oh I'm sorry, I thought Timmy cares about his services outreach to international markets considering Apple's hardware update cycles are stalling and sales across the board have plateaued.

 

[JBGoode]

I agree, but the benefits are so marginal that they are rarely worth the efforts.

What effort? It's literally free money for doing nothing out of the ordinary. By Christmas, I will have hundreds of free dollars to spend for simply using my cards to buy groceries and pay bills. There was zero effort involved.

 

[ipponrg]

I have been using a debit card for the better part of my life. I am holding on a credit card partly because my bank kept pushing them so hard to me, but I find I hardly ever use it, because its benefits don’t match my lifestyle at all. For example, I simply don’t frequent the shops and eateries they offer rebates for. And yeah, I call their helpline once a year to get my annual fee waived.

There are more risks and less advantages using a debit card here in the United States. Off the top of my head:
- Your typical bank debit cards deduct directly from your checking account. That means it's not paper money.
- With credit cards, it's paper money. You at least have the time to dispute a fraudulent purchase before paying with real money.
- Building credit is what is used here to secure loans and financial responsibility. Debit cards generally do not build credit.
- Obviously rewards is another advantage of using a credit card. If you understand how to play the credit card game, you will be at a significant advantage over others long term.

I am probably “spending wrong”, and I suppose that with a little effort, I could find a card with the right rewards, but I just haven’t been bothered to. This may sound a bit ironic coming from someone who majored in finance, but I am happy keeping my money in an ordinary savings account and well, just spending with Apple Pay where I can and paying with cash / nets when I can’t.

It's nearly pointless to keep a large amount of money in an ordinary savings account. If you want to keep it in a somewhat accessible account, it's better to pursue high yield savings accounts. Many typical banks give < 0.1% on your savings. High yield savings can give you ~2.5%.

0.1% yield with $10,000 for 10 years = $100.xx interest earned
2.5% yield with $10,000 for 10 years = $2,800.xx interest earned

Majoring in finance is irrelevant to figuring out how to maximize your financial situation. I have friends that have majored in political science and global studies who are very savvy at this, and hell I majored in computer science. It's more or less a game for many and also understanding how financial institutions work when it comes to credit. There are many sites that discuss this.

That’s why l am attracted to the rewards of the Apple Card, as it doesn’t make a distinction about what I buy or where I buy from, and the rebates are instantaneous. It’s the sort of simplicity that I buy into the Apple ecosystem for. Likely not the best, but good enough in the areas that I do care about.

That's fair. Everyone has their own financial situation (whether at the end it amounts to laziness or not) and their own beliefs in what this card does for them. However, it's erroneous to parade that the Apple Card is the best card for everyone in the U.S.

 

[iGeek2019]

That’s what I’m wondering too. But given that European banks generally charge an annual fee for a card, and charge fees up the wazoo for foreign transactions, make it difficult to get a card if not from your own bank, rape you if it’s a prepaid card, and still generally do NOT offer Apple Pay, the banks have created a big space for Apple to enter with a free card offering Apple Pay. If Apple offers a reward, or decent free buyers/travel insurance, customers will snap these up.

Even if Apple (possibly Goldman) breaks even on the card, as a loss-leader, Apple will be ahead by building customer loyalty to the iPhone, and Goldman will have the chance to sell other banking, finance, investment products to those customers.

Agreed. Take my Lloyds Bank issued credit cards as an example; am charged £24/year (with a rebate of £12 for being a Club Lloyds customer) but at some point soon that’ll be taken away from me as American Express are in the process of revoking third party issued cards.

So hopefully Apple offer something equally as generous to us Europeans without annual fees etc.

 

[brinary001]

To preserve a higher FICO score, If your oldest cards are free, keep them. Cancel newer ones with annual fees. Also be careful to only use 10%, definitely less than 30% of the limit on your card. High credit utilization ratio hurts FICO.

This is actually quite helpful to know, thanks!

 

[konqerror]

That’s what I’m wondering too. But given that European banks generally charge an annual fee for a card, and charge fees up the wazoo for foreign transactions, make it difficult to get a card if not from your own bank, rape you if it’s a prepaid card, and still generally do NOT offer Apple Pay, the banks have created a big space for Apple to enter with a free card offering Apple Pay. If Apple offers a reward, or decent free buyers/travel insurance, customers will snap these up.

The problem is the EC has capped interchange fees, the amount the bank receives from the merchant to pay for interest, fraud, billing, points and so forth, at 0.3%, whereas the comparable rate in the US is around 2%. Similar rates apply in places like Australia. Europe will never get the same amount of benefits that US customers get for "free".

 

[T-R-S]

I have a business and 3% cash back really adds pop for me.
FWIW with my Bank I have 2 months protection on charges with a Credit Card (most) you have 6 months protection

 

[alexandr]

and by "as early" you mean "as late", right?

 

[Timemaster]

What card, pray tell, offers a fixed 5% for groceries, gas, pharmacy?.

It would be the original blue cash from AMEX before they changed it a few years ago. My card is grandfather in. AMEX figures out they gave way to sweet of a deal by in 2008 and killed it after a few years but the ones of us who had the cards got to keep it going.

 

[jagolden]

Highly anticipated by whom? Goldman Sachs and Apple employees? Nobody outside of the US gives a rat’s rear end about a piece of plastic oh titanium that they don’t stand to benefit from in the slightest.

Trust me, not just people outside the US. Most people need a(nother) CC like they need a hole in the head.
Talk about the “I’m cool”, look at me factor. People aren’t laughing with them, just at them.

 

[mashinhead]

It is still very unclear to me why this is highly anticipated. It's a credit card. That's it.

 

[Fried_Gold]

It is still very unclear to me why this is highly anticipated. It's a credit card. That's it.

Because it's Apple and it's titanium.

 

[PickUrPoison]

It is still very unclear to me why this is highly anticipated. It's a credit card. That's it.

I suppose it’s not that different from a highly anticipated superhero movie or a highly anticipated release from Taylor Swift or whomever. It’s just a movie, it’s just a record.

People have different interests ¯\_(ツ)_/¯

 

[The Game 161]

In US only though I imagine...
[doublepost=1564322343][/doublepost]

It is still very unclear to me why this is highly anticipated. It's a credit card. That's it.

It’s Apple...guess the cash back is ok if you buy a lot from Apple.

 

[MarkNY]

For some reason, I thought it was a default 2% back with more if you used Apple Pay. Upon further reading, at 1% default, 2% Apple Pay, nothing to see here.