On Monday, March 25, 2019, at 18:00, the first Apple Keynote was held in Cupertino, California, in 2019. The Apple Keynote was presented with the slogan “It’s showtime” and revealed a lot of revolutionary and new products to the fans. One of these new products is the credit card Apple Card, which has been announced for the time being only for the US from summer. The resulting impact on the financial industry is enormous, as there has not been a revolution like this for 50 years.
Apple’s entry into the financial industry with the Apple Card
Apple has announced its entry into the financial industry with the Apple Card. The Apple Card is a virtual credit card that enables contactless payments to NFC terminals via Apple Pay, making life easier. Apple pursues quite interesting and new approaches that can also score against the competition in the most important corporate principles such as “security and privacy”. The Apple Card is likely to fundamentally change the banking industry we know now, as all banks that are not part of Apple’s partner banks are under tremendous pressure. The pressure refers to the offer these banks have to offer in order to remain attractive enough for the customers and to be a worthy competitor to Apple.
We all know that the financial industry is struggling with change. For a good example of this is, for example, the magnetic stripe that has long been replaced as the most important but uncertain means of payment in the United States. How difficult it is for the financial industry to let go is also shown by the magnetic stripes still applied to plastic cards. But Apple does not seem to care, because the group increases the conditions for payment again, because Apple Card not only virtual but also on a physical level will be available.
Added value for the Apple Card users
The Apple Card gives users the following benefits: “Little Charges, Big Discounts and Cash Back” that has not been there before. For example, Apple will not charge a fee for transactions outside the Eurozone. They are usually associated with a very high basic fee (1.5% – 2%). The bonus system Apple Card users have a thorn in mind for other banks, after all, the customer is rewarded for shopping with a discount, which is also available daily. Therefore, Apple offers it’s Apple Card users a three-tiered bonus system with very attractive discount levels.
Three, two and one percent
For example, there is three percent when using Apple Pay in an Apple Store. This also applies to online purchases in the Apple universe.
There is two percent for all other purchases and one percent for a special case. This cashback is also available as daily cash, that is, it is paid once a day and not as usual once per billing period. The bank must, therefore, pass this bonus back to the customer more quickly.
One percent for using the physically present Apple Card. This should be the special situation that always occurs when Apple Pay should not work and a card must be pulled out of the purse.
The Apple Card is Toll-Free, has a Super Bonus System, is both virtual and physical, and brings some great extras to users. These extras include setting up a cost plan (with location and different categories) and the ability to safely save gels and get money back while shopping. Personally, I find this service from Apple just great and hope that he can soon assert itself Europe.