Haters be Damned: Apple’s Credit Card is the Most Revolutionary Launch in Its 40-Year History

Journalist:
Ben Brown
March 26, 2019

Apple launched a credit card on Monday to a chorus of “so what?” from investors. Apple stock crashed overnight and everyone from CNBC to Huffington Post called it underwhelming.

They’re wrong. The Apple credit card is the biggest game-changer in the history of the company.

Just think about what it means for a minute. The biggest company on the planet is positioning itself as a bank and there are already 1.4 billion people with an Apple Wallet in their pocket. Apple stock should be surging.

Traditional banks will soon be wiped out; replaced by tech companies. Apple just made the first move and no-one batted an eyelid. Time to wake up.

People trust Apple more than banks

Here’s the key point. People don’t trust banks anymore. The 2008 banking crisis wiped out any faith in the old system and we’re all desperate for an alternative.

But we do trust tech companies. At least three recent studies show that Americans trust Silicon Valley giants more than banks. People will trust Apple with their money. Expect swathes of young, disenfranchised adults to switch to Apple banking services.

“The younger generation will gravitate toward brands that provide the best user experience, the best value, and ultimately, can help them reach their financial goals.” – Devin Ryan, JMP Securities.

70% millennials would try a tech company’s credit card

A further study shows that most Americans would try a financial product from Apple, Amazon, or another tech company.

Indian and Chinese consumers are most open to tech-led financial services. Source: Bloomberg

This is no small study, either. The Bain report surveyed 133,171 people in 22 countries. People around the world are crying out for an alternative, digital banking system. Apple just gave them one.

“[Consumers are] saying if you come up with an experience as simple and easy as my shopping experience is with Amazon, I’m ready to do that now.” Gerard du Toit – co-author Bain report.

1.7 Billion people in China prove that tech banking works

If you think Apple’s payment options are a joke, look at the precedent in China. WeChat’s mobile payment service has almost 1 billion users. Its rival, Alibaba’s Alipay, has 700 million.

Mobile payments in China have eclipsed traditional methods. Apple’s credit card, alongside the existing 383 million Apple Pay users, will do the same in the US.

“We’ve seen this happen already in China, where it’s common for people to do many of their banking activities through WeChat and Alipay.” – Gerard du Toit – co-author Bain report.

Apple’s banking future

Critics are bashing Apple’s poor credit card rates and rewards system, but they’re missing the bigger picture. Apple has always been more expensive on price. It beats the competition on user experience.

Apple will attract millions of young people because they trust Apple more than their existing credit card provider. It’s also easy-to-access and the UX is better than any other credit card tracker.

Apple reveals its credit card. | Source: Apple

Most importantly, payments are just the start. What next? Apple checking accounts? Investment accounts? Mortgages?? Apple is dipping its toe in the most important industry on the planet. And it has 1.4 billion customers waiting.

The Apple credit card isn’t disappointing. It’s a revolution.

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

Ben Brown

Ben is a journalist with a decade of experience covering financial markets. Based in London, UK, his writing has appeared in The Huffington Post and he was Chief Editor at Block Explorer, the world's longest-running source of Blockchain data. Reach him at benjamin-brown.uk or on Twitter at _Ben_Brown. Email ben @ benjamin-brown.uk.