Apple just revolutionized another industry with Apple Card

On “March 25th, 2019 Apple announced a revolution in how payment cards will work in the future,” Brian Roemmele writes for Quora. “More than just a co-branded credit card, this is a well thought out deeply engineered new Apple product.”

“If one [was] to analyze all of the millions of dollars that [were] wasted on wallets, new fangled ways to pay, new person to person payment systems and other digressions, it would total in to the hundreds of millions of dollars, all lost for no particularly good reason [than] ‘not invented here’ mentality… Apple indeed has rendered many business plans and business models irrelevant and redundant for many reasons,” Roemmele writes. “Unlike any payment device before, Apple Card is fully engineered to an extent that only [a] few companies have achieved in any product and has not been seen before in the payments business. By engineered, I am speaking to not only the technology behind the product but the experience you will have using the product. Apple Card completely rethinks everything about the credit card, breaks it down to the fundamental essence and rebuilds it in modern engineered Apple-like delight.”

Created by Apple and designed for iPhone, Apple Card brings together Apple’s hardware, software and services to transform the entire credit card experience.
Created by Apple and designed for iPhone, Apple Card brings together Apple’s hardware, software and services to transform the entire credit card experience.

“When you buy something using the Apple Card, you get a percentage of your purchase back in Daily Cash deposited to your Apple Pay Cash card. Not in a month from now like every other rewards card, but every day. There’s no limit to how much you can get back. The pure brilliance is Daily Cash goes right onto your Apple Cash card, so you can use it just like cash. This is profoundly important,” Roemmele writes. “Nothing has ever been done like this before. Apple in effect is creating ‘new money’ that has no net cost to Apple.”

“When the Apple Pay Cash card user pays any merchant, Apple gains revenue on this transaction. When the Apple Pay Cash card user pays Apple, Apple does not inure any merchant payment fee because they are the merchant and the card issuer,” Roemmele writes. “It is not too early to suggest that over the arc of 10 years, about 10% of Apple pure profits can come from payments alone. I do not arrive at this prediction lightly, the compounding effect is quite powerful.”

Apple's physical laser-etched titanium Apple Card
Apple’s physical laser-etched titanium Apple Card

“The physical Apple Card is a brilliant and sublime design that many will overlook as being ‘just a plain card,'” Roemmele writes. “I will go as far as to state that the new laser engraved titanium Apple Card, with just your name will become the new ‘white headphone cords’ of this epoch. It is genius brand signaling that will in and of itself drive use of the card.”

Much more in the full article – highly recommendedhere.

MacDailyNews Take: Spot on.

The biggest news of Apple’s “It’s Show Time” event, by far, was Apple Card.

What was our very first reaction to the physical Apple Card?

Yes, we want that physical card. We’ll use the digital card via our Apple Watches whenever possible, of course (more cash back), but we want that titanium, laser-etched card!MacDailyNews, March 25, 2019<

Hundreds of millions of Apple users will have or have already had the same reaction. Apple is about to generate huge profits out of thin air.

Apple just revolutionized another industry with Apple Card.

Introducing Apple Card, a new kind of credit card created by Apple – March 25, 2019


        1. I was wondering the same thing when I saw the part suggesting you make more frequent payments (every 2 weeks). Is that the frequency of interest? It could’ve just been for those who need to manage payments paycheck to paycheck. On the other hand Apple Card makes so many changes for the better, it isn’t safe to assume everything else about it is the same as traditional cards.

      1. credit card rates, like payday loans, should be capped by law. if a company feels it has to charge 5 or 10 times the prevailing Fed rate because some borrowers are “too risky” then obviously banks shouldn’t extend credit to these people.

        especially when the average public has no financial education whatsoever. it’s immoral. to this day banks and loan sharks are preying on people knowing full well they can hide the bad loans in complex financial derivatives which will be bailed out when the debt blows up again. wash, rinse, repeat. it doesn’t help that the current administration thinks usury is just peachy.

        1. I believe it was in the early 1980’s that California changed it’s usury laws in response to changes in the economy. Prior to that, charging anything beyond 10% interest was illegal.

        2. According to “Federal law does not mandate interest rate limits for credit cards, but credit card companies must follow certain federal rules under the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (Credit CARD Act).” Basically if the agreement is acceptable to the recipient of the credit card the rate can be anything. There was actually a card at 79.9% by Premier Bankcard, a South Dakota credit card marketer reported on back in 2010.

  1. I absolutely love using ApplePay…i just wish more merchants accepted it. I think they said yesterday that in the US 80 (or 85%?) of merchants accept it. That’s certainly not my experience with the stores I frequent.

    1. There are more terminals that accept contactless payments than you might recognize. I have noticed the contactless logo popping up after I have already inserted by card in the slot. If more terminals displayed the type of payments they can process on the terminal itself, not just the screen, I think you would be surprised how many of them can accept Apple Pay.

  2. I like the Titanium Card itself. Otherwise, my rewards from my bank is simply way better. They can’t beat what I get back by a mile. The Card though I would get it to collect it.

    1. Agreed. 2 failings and 1 unknown with this card.

      First failure, the 1% cash back for physical purchases is a non-starter when cards like citi double pay card pays 2% all the time. Apple has all the money, they could at least match this.

      Second failure is the BIG one. That they partnered with goldman. Apple has enough money to be their own bank. The BANKS make all the money on these cards. If apple entered the financial field, it would have been earth shattering. Like 100 points onto the stock inside of 6 months earth shattering. It would have scared everyone senseless. GE did this, they ended up making more money in finance than in products. This could be a cash machine for apple. Hopefully they will eventually bank their own product. For now, they are just another credit card, sad.

      Last, the unknown. It’s not clear if they give you a 30 day float interest free. Most credit cards do this, but I didn’t hear this made express, so hopefully this is just a detail needing to be confirmed.

      Still, not a bad card. Just not a great card.

      1. I agree with your assessment that 1% is not impressive. We’ll see if competition leads to any change in the future. However, given the massive regulatory structure that banks must operate under, the thought of Apple trying to enter that field (assuming they would be allowed to in the fist place) would be a huge undertaking. I think it was not only smart but imperative that they partner with an issuing bank. I can imagine the howls if Apple had announced the card saying it will be available in a few years after we get out bank up and running.

  3. I pay everything with the Apple Pay. Here in Europe everyone accepts it if they have a credit card reader. Now they ask me if I want the receipt and I decline the offer because my bank already sended me one once I used my iPhone or Apple Watch. I love how fast it goes. Much faster than normal card with pins and much much faster than cash. Pure delight. Also the cashiers love me too. 😆

  4. I have a 0% APR card right now for 18 months. I already have other offers for 0% APR cards and will switch when the time is right.

    I am not paying 14% and up regardless of a kickback from Goldman and Apple. Banks currently get money from the Fed for 3% and pay less than that on deposits- BTW.

    If Apple wanted to disrupt things, they could have offered a Credit Card to good risks at 5-6% and destroyed the banksters. Instead, Cook partnered with the sleaziest outfit on Wall Street at the prevailing usury.

  5. I run with basically 4 credit cards: Discover and Chase Freedom for the 5% cash back categories that change every 3 months; Citi Double Cash for 2% on the categories not covered by the first two above and a Capital One Quicksilver for 1.5% when I can’t use the Double Cash card due to it being a Mastercard. All have no Annual Fee and are chipped.

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