Apple Card becomes six: conversions, but where is internationalization?

Apple also offers credit cards? Yes – and for almost exactly six years. The so -called Apple Card celebrates its birthday this week. Since August 2019 is already on the market that can be used digitally via Apple Pay and physically in the form of a titanium map. However, Apple has so far not been able to conquer other markets with the product that is quite successful in the USA. It has not even worked in English -speaking regions such as Canada or Great Britain. However, there are now some changes to the anniversary, at least the insider claims from the financial sector.

High interest rates, yet customer -friendly (he)

When the Apple Card started six years ago, the “Convenience” aspect spoke in particular for the product that Apple brought onto the market together with Bank Goldman Sachs. Each iPhone owner can basically click an Apple Card in less than ten minutes as long as there is a certain creditworthiness-this is relaxed in the wallet application. Then the card can already be used via Apple Pay and NFC. The physical card comes by post a little later.

Typical credit card interest rates are (very) high, but Apple makes it easier for customers to pay the amount entirely and therefore do not even get into the “Revolving Credit” trap in the interest. In addition, the card does not provide for any additional fees, for example for purchasing abroad. There are also no annual fees. However, the Apple Card did not go perfectly: So there were punishments for Apple and Goldman from the financial supervision, since the customer service did not come after the answers when it comes to problems. One of the reasons: Apple’s billing cycle runs exactly monthly, which always started many inquiries at the same time.

Questions about the future and a new partner

Goldman Sachs wants to get out at the Apple Card for years, but Apple’s contracts are bomb solid. The bank is intended to drive in high losses with the Apple Card, since the interest rate gains can be lower than planned and cannot be earned with fees. In addition, the private customer business is no longer a focus from Goldman – which can already be seen from the fact that the bank still has no internationalization strategy for the Apple Card.

Now a large bank, JPmorgan Chase, could mutate into a Apple card rescuer: Apparently there are contract negotiations with Apple on the home stretch, as the Wall Street Journal had reported this summer. It is about 12 million customer relationships and an account value in the middle double -digit billion dollar area. How quickly JPmorgan CHASE could internationalize is unclear.