Apple Card: A little side bet as hardware sales plummet
Compare Apple Card with Facebook’s plan to launch a digital global currency and the ambition looks stunted
Apple hopes to attract customers to its Apple Pay service with a shiny, titanium lure. The Apple Card, created with Goldman Sachs, is a bedazzling kicker to a digital product. Why else would it offer a lacklustre version of services already available online?
Unlike an iPhone, the credit cards Apple is expected to launch in August lack near-field communication. There is no point waggling one in front of a reader when buying something in person. Rewards are less impressive, too. Transactions with a physical card earn 1% cashback. Digital payments via Apple Pay get 2%.
For both Apple and Goldman Sachs the point of the card is visibility. Apple Card has no fees, meaning issuers cannot divvy up a cut of the interest on balances or late fees. But Goldman Sachs can use its first foray into credit cards to show its commitment to personal finance...