The Apple Credit Card is Lackluster

Apple has just announced that they are getting into the credit card business.

I suppose one annoying thing about being a publicly traded company is that they must live in constant fear or being irrelevant. It’s no secret that their iPhone/iPad business has started to flounder. Queue in the new services that they provide: The Apple credit card, Apple arcade, Apple News+ and Apple TV+.

This shift in paradigm is revenue driven, but will most likely not yield success. Apple’s bread and butter is beautiful hardware. I can still remember opening the box to my first iPod back in the early 2000s. It was basically a physical disc hard drive with a black-and-white screen. Somehow, Cupertino made it beautiful. Imitators united: the Zune, Blackberry, and several cheesy alternatives, but nothing seemed to reach the polished quality of the iPod.

Then their phones revolutionized the cellphone industry back in 2007. I remember getting my first iPhone and realizing the world was about to change.

In a desperate cry to stay relevant amid an evermore crowded arena of smartphones, Apple has decided to try to get in our wallets.

Here are some things I like about the new Apple Credit Card:

1. It will monitor your purchases and you can easily budget your money and see your spending. I love this. I’m an avid user of Mint. The previews on this software look amazing. Honestly, if I were to get the card it would be mostly for this feature alone.
2. It has a decent cash back policy. At least 1% on all purchases guaranteed then up to 2% if you use Apple Pay and 3% if it’s from an Apple store.
3. Security: It will invoke FaceID or TouchID every time you use the app. It also does not have your name on the card or numbers for someone to steal. Thankfully, most credit card companies will reimburse any mishandled funds, so this extra security doesn’t call out to me.
4. The titanium card looks beautiful. This actually reminded me of the Titanium card that Billy McFarland’s used for his credit card scam.
5. The rewards are cashed out daily. This actually reminded me of the new account that Robinhood is scheduled to offer this year. It sounds like a great deal. 3% interest and paid out daily.
6. Low on fees: late fees, yearly fees etc.

Now let’s talk about the disadvantages:

1. Apple will charge a 1% fee to make a transfer from the credit card to a debit card. This in my opinion could prove to be annoying for millennial users that are used to free transfers with Venmo.
2. It’s rumored that apple will no longer let you send money to other people that use Apple Pay unless you have the Apple Credit Card.
3. There are much better cashback options out there!

My favorite cash-back credit card is Citi’s 2% Cash Back credit card. You can purchase items anywhere and get 2% back. This adds up to around 200 dollars a quarter for me. It’s always fun to get that check in the mail.

How I would have done it differently:

1. 2% cash back on everything. If Citi can do it, Apple can.
2. Free transactions using the Apple Credit card and other Apple Pay users. (Apple really should try to get a piece of the Venmo Pie)
3. I would make the card lighter in weight. No one wants to carry around a heavy credit card. It may be fun, like with Billy McFarland’s card, but at the end of the day our society is veering away from a heavy physical wallet.

Let me know what you think of Apple’s new credit card. Will it be a success? Subscribe and listen to our podcast. We chat about it in episode 32.