An Apple Card analysis of CreditCard.com by Ted Rousman shows what it has accomplished in the first year, and in particular, in some ways the epidemic has helped Apple Card’s appeal.
Apple Pay Focus
First, Apple using the digital first strategy with Apple Pay has proved successful, especially when consumers are using contactless payments between the Cov-19:
The epidemic has greatly intensified consumers’ appetite for contactless payments, mostly because they are afraid of touching bills, cards, and payment terminals because of potential germs. Visa said contactless usage jumped 150% from March to July 2020.
Apple Pay is not the only mobile payment method, but it is the most popular. It is also possible to pay by tapping a card yourself, although most American contactless users prefer to use their phone.
Rossman suggests that Apple card holders receive 2% of daily cash when using Apple Pay and in an epidemic that increases contactless payment usage, behaviors can become long-term habits.
Simple cash back formula
While the Apple card has drawn some criticism in the midst of street rewards, the direct cash cache feature is closing.
Can you think that Apple focuses on card travel and then the epidemic hits? Fortunately for Apple, it did not place a large stake on a particular industry (especially one that was devastated by COVID-19).
The card promotes simplicity and offers daily cash rewards on all purchases. Those are the features that resonate with customers right now. Who can’t use more cash, right? Especially when, according to our sister site Bankrate.com, nearly half of American households have income from the virus.
The simplicity is good, too. A 2019 CreditCards.com survey found that 72% of cardholders would use the same card or two instead of mixing several different cards to get the benefits.
Differentiating Apple Card
The Apple Card was promoted as a simple and compassionate credit card and Apple has followed suit. Rossman relieved the epidemic of monthly payment to Apple card users without interest, something that set it apart from the competition. There is also super easy access to customer service directly from the iPhone, no charge, and tools to help customers pay less interest.
From the beginning, Apple Card announced that it would be a Kinder, Gentler credit card at no charge. Its financial management tools will actively encourage customers to pay lower interest, and it will be easier to contact customer service via text message and phone call.
During the epidemic, Apple Card’s customer support program has excelled. Upon request, cardholders can forgo payments without potentially interest for several months – a perk standing in the industry for its generosity and longevity.
Greater security is also an important aspect of the Apple card with no numbers on the optional Titanium card and the natural security that comes with Apple Pay.
The report mentions that Apple has done a great job of expanding its 3% daily cash partners. The latest was Panera Bread in August this year. There are now 7 retailers offering 3% cash back in addition to Apple. However, Rosman argues that Apple’s average award rate still lags behind its superiors.
Nevertheless, while Apple’s expanded list of merchants offering 3% cash back is a start, I personally don’t spend a significant amount on any of them, and I can bet that most people would say the same. .
Combining 3% of merchants, 2% of Apple Pay Rewards and 1% of physical card returns, I think most Apple card users end up with less than 2% on average. The following cards that extend 2% cash back on all purchases: Citi® Double Cash Card (technically 1% when you buy something and 1% when you close it), PayPal Cash Back MasterCard and Fidelity Rewards Visa Award Card.
This past summer Apple also expanded its 0% interest offer from the iPhone only to now include iPad, Mac and more.
Meanwhile, the report touts the $ 50 sign up bonus of the Apple Card which was weak this summer. We can include this as a modest success in the first year and also a great opportunity to move forward.
Joint accounts and additional cards
Rosman’s report did not dive into these two occasions, but they are important to mention. First, there is still no joint account support or ability to request additional cards.
There is certainly an untapped market for Apple card users who share finances. Part of the issue is the possibility that the Apple card is tied to an Apple ID. Apple may know how to roll out joint accounts and additional cards of Apple cards in its iCloud family sharing. This will not only make it easier for partners to use, but also give parents access to their children.
Integration with budget software
Although the Apple Card has certainly progressed over the past year by launching the ability to export transaction data as CSV and OFX files, it is still way behind the times. For example, you can drag Apple cards into budget software such as Mint, but this does not include transaction data for now. So you just look at things like balance, available credit, and your interest rate.
Hopefully, we’ll see that Apple will improve integration with Mint and other budget software in the coming months as credit cards compete.
Shortly after the Apple Card was last launched, the CEO of Goldman Sachs called it “the most successful credit card launch ever”. Although it is difficult to say if this is so (and whether by metrics) then the Apple card certainly has a solid start with a lot of potential.
And with Apple’s September event expected to bring a new Apple Watch and the iPad Air and iPhone 12 around the corner in the short term, a new wave of customers take the 0% interest offer thanks to the Apple card Can.
If you want to apply for an Apple card, we’ve got a detailed walkthrough here.
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