On its conference, March 2019. Apple announced new products and services, most notably the Apple Card. The long-awaited card issued in cooperation with Goldman Sachs. Goldman Sachs CEO stated that the card would be rolled out worldwide; it is expected to arrive soon in the countries where the Apple Pay service is available.
The new step is interpreted as an attempt by the company to enter a new market that was exclusive to likes of Visa and MasterCard. Especially after the reported drop in sales of Apple phones and shrinking market share. This is evident in view of the other products announced by the company at its conference, which represent a historic transformation of the company from a hardware producer to a service provider.
The company announced the Apple News+, a service which provides content from magazines and premium newspapers for a monthly subscription of $ 9.99; and Apple TV+ service for digital content streaming for a monthly subscription as well, and the gaming service Apple Arcade, another monthly subscription service.
This may be Apple's most important event in recent years. Apple's news service may be working in a sector where it cannot make much money, as most of the target audience is already subscribed to these magazines. Apple TV is not expected to substitute Netflix or Hulu. Nevertheless, the same cannot be said about Apple card. The card offers real solutions in areas where current credit cards are still lagging, and I think a lot of success awaits the card.
The card is an extension of the Apple Pay service announced in 2014, which is a mobile payment and a digital wallet. It digitizes and can replace the credit card pin and chip make purchases from your Apple devices directly in a contactless payment terminal.
Apple uses several technologies to ensure user verification. Apple's Touch ID and Face ID system are among the most secure and accurate in the world, and the use of these systems to verify the user raises the level of protection, in addition to that, Apple never stores the card number on the device or on its servers, and the card number with not be shared with the merchant.
All of these characteristics have formed the cornerstone for the Apple card to work on. The advantages of the new card can be summarized in the following:
Ease of application
Where you can apply for the card directly from Wallet application. After fulfilling the requirements, the user will receive a metal card that can be used directly to any sales point. The virtual card can be accessed from wallet application and use to make purchases in stores that accept the Apple Pay service.
No fees!
No annual fees, no fees for global use or any hidden charges, this is a strong motivation to own the card without fear of any tricks and tricks bank.
Very low-interest rate
The rate of interest on the card is between 13.24% to 24.24%, which is lower than average, but by adding the rest of the features such as reward programs and the absence of fees, the rate looks very low.
Privacy and security
In continuation of its good reputation in security and privacy, all information written on the card is the name of the owner only. The card number and CCV code are not written on the card as the case with conventional credit cards. This, of course, provides protection in the case of card theft. All transactions will appear on the phone, and the card can be canceled as soon as it is lost through your phone.
The rewards program
The card rewards program does not contain points or offers; you will receive your reward in cash back with the following details:
- When you use the card for a purchase from App Store or iTunes, you will receive 3% cash back of what you spent
- When using Apple Pay at any store or A service outlet that gets you 2% of the invoice value
- Using the card in any other store that does not support Apple Pay service gets you 1% refund
In conclusion, Apple seems to be following a new strategy switching to the service sector. Can it maintain its value as one of the largest technology companies in the world? Will this be a paradigm shift for tech companies moving from tech products to banking and financial services? I think all of this depends on the success of the Apple card.