Apple are going to be rolling out a credit card, in partnership with Goldman Sachs and Mastercard later this year and the rewards are compelling.
No frequent flyer bonuses in sight, just cold-hard-cashback which gets credited to your account immediately.
The tiered cashback model is as follows:
- 3% cashback on Apple products
- 2% cashback using Apple Pay
- 1% cashback on every other purchase made with the physical credit card
There’s more…
- No annual fees, international fees, fees for making a late payment or fees for exceeding your credit limit
- Daily cashback credits as opposed to the monthly model used by most cashback programs
- Accompanying app allowing for easy financial tracking and management
- Engraved titanium physical card with concealed numbers, fitting the sleek, minimalistic design we all expect from Apple
- Apple Card support available 24/7 through Messages app
This is certainly something simple for everyday consumers to understand and see value in, especially those 1.3+ billion consumers worldwide who have an active Apple device.
The card is built right into the Apple Wallet. It can be accessed on any Apple device and managed with a user-friendly app for added convenience. The app lays out what you spend, when and where. All beautifully clear. There’s also weekly summaries, a map view and spending broken down by category, neatly displaying your full spending picture. You can see your daily cash balance which goes straight to the Apple Cash card and can be spent with a tap. On anything you want.
The uniquely designed physical card rounds it off, adding to all the ways in which the Apple brand already emotionally connects to consumers through the creation of status.
Well done, Apple.
Offering a generous 3% discount on all Apple products purchased with the credit card will most likely increase spending within the Apple ecosystem. It will also increase customer acquisition and retention, whilst also building barriers for competitors.
But the data play here is what’s really interesting.
Apple will now be able to track and capture detailed transaction data on consumer spending habits. These unique customer insights not previously available to Apple, will help them customise their products and personalise their communications and customer experiences further.
While I cannot see a huge appeal for this credit card among non-Apple users, the cashback rewards may be enough to convert them into Apple customers.
For Apple’s existing customers, I believe this will be a very popular credit card option, simply because of the compelling rewards that are built in. And it’s no surprise who receives the real rewards in terms of company profits and rich customer data….
To read more about how the credit card works follow the link – https://www.apple.com/apple-card/how-it-works/
Stacey has a wealth of experience within loyalty, marketing and eCommerce across multiple channels and business models including Boost Juice, ModelCo and MyHouse. Most recently, Stacey has been managing the investor, member and retailer communications for blockchain loyalty company EZToken Rewards, as well as taking the lead on designing, developing, implementing and operationalising Resident Rewards, a new member benefits program for Lendlease.
Stacey is a proud pioneer of women in blockchain and attends meet-ups regularly. She built the website www.blockchainloyalty.io and regularly contributes content.