Is Apple’s move into finance with the launch of a credit card a good idea for the tech giant?
YES, says Andrew Mitchell, vice president at JCB.
Despite the steady growth of Apple Pay, it’s relatively early for Apple in the payments sphere. However, this product could be a catalyst, strengthening Apple’s position in financial services as well as reviving its slowing iPhone sales.
The product itself is a masterstroke, especially for Goldman Sachs, for whom the brand affinity with Apple is a high prize. Apple’s device and app expertise means the package looks very futuristic and is wrapped with titanium appeal, plus Mastercard’s broad global acceptance coverage.
The US credit card market isn’t as strenuously controlled as the UK’s for interchange fees. When married with Apple’s growing ecosystem, it creates a great opportunity for those involved to offer an array of everyday-usage customer benefits, such as cashback, reduced consumer fees, and financial management tools.
This could indeed be the perfect bridge-product for an increased “appification” of spending; leading us to believe that Apple just took one small step towards a giant leap into our financial lives.
NO, says Sophie Lewis, chief strategy officer at global full-service marketing agency VMLY&R.
As if Apple doesn’t already take me for everything I’ve got and try to get me to connect everything to everything, it’s now throwing in a credit card.
Yes, it sounds a bit consumer-champion in tone (no late fees, great), but it feels like yet another way to lock me into Apple Land and throw away the key. Plus it ends up reminding me that Apple has big pots of cash stashed away.
The ever-loyal Apple Heads are jumping up and down and getting all excited – at a credit card. But really, what’s the point. Okay, there’s cashback on – wait for it – Apple products, but other than that, what’s in it for the consumer?
I’m always after a real consumer benefit, and I could be wrong, but I can’t see a genuine one here. Or at least, not one that goes beyond any other credit card already in my wallet.
I reckon that Steve Jobs will be turning in his grave.