On Monday, Apple launches its namesake credit card, the Apple Card. Apple’s card comes out after digital money companies PayPal, Square and PayPal-owned Venmo all introduced their own physical credit, debit and prepaid cards in the past few years.
The Apple Card comes at a time when the adoption of mobile payment services like Apple Pay has stagnated for years. Many customers would rather pay at checkout with what they know will be accepted, not ask repeatedly if a mobile option is available, lack of such mode and features makes it a major hurdle for mobile payments.
The credit card industry in the US is heavily regulated and extremely competitive, preventing tech players from diving in. In addition, neither Google nor Samsung has the same fanboy-fueled brand power as Apple, making things even harder for them to create waves in payments.
CreditCards.com analyst Matt Schulz says, “My gut on that is they wouldn’t necessarily jump in unless they saw that this Apple move was successful,”
The Apple Card will be available in the US this summer. Some of the features would be getting rid of annual fees, late fees, over-limit fees, and international fees — but it will be raising your interest rate if you pay late. The card also offers daily cash rewards, with 3 percent back when buying directly from Apple, 2 percent back when paying through Apple Pay and 1 percent back when paying using the card.