comment 1

The Apple Card fine print

Apple announced a number of new products and services this week, including Apple TV+ and a new Apple credit card, which will initially only be available in the US.

It all aligns nicely with their goal of growing their service/subscription businesses and weaning themselves off of an over-dependence on iPhone revenue.

Below is a video summary of the new Apple Card. In typical Apple fashion, it sounds and looks like an elegant solution and I already want to one.

I thought this topic would make an interesting follow-up to my recent post about whether cities should be banning cashless businesses so as to not discriminate against the “unbanked.”

Because embedded in the above credit card is the following cashback reward structure:

  • 3% back on Apple purchases
  • 2% back on purchases made with Apple Pay (iPhone)
  • 1% back on purchases made with the (optional) physical card

And so what this “card” will do is pay you to always use your phone. The cashback reward system is also instantaneous and you’ll be able to spend that Daily Cash (that’s the name) just like you would actual cash.

Do you think this would change how you pay for things? I think for most people it will.

1 Comment so far

  1. Jakob P.

    Honestly, I don’t want to use my phone as a credit card replacement. It’s not just a bit unwieldy but can also more easily run out of battery or randomly turn off when exposed to sub-zero temperatures. That’s not something I want to rely on for paying at a store. [1]

    Instantaneous cashback is a nice gimmick, but for the small amounts of cashback I may as well wait until the end of the month, it really doesn’t make a difference. 2% cashback is what I get for my three most-used categories via Tangerine credit card, which ends up being comparable.

    The best thing about this one is the lack of (permanent) credit card number and the extra security that comes with that. But if it requires an always-charged phone (…only one particular kind of phone, yay lock-in) and introduces another financial account at yet another institution, in all honesty, it’s not worth the hassle and mental overhead.

    [1] One may argue that one can always bring a fallback option, but then why add extra complexity in the first place. None of the available credit card options are going to make a sizeable enough difference in one’s bank account compared to each other – I’d much rather choose one single thing that works well and then not have to think about it on a daily basis, thus having my brainpower available for stuff that actually matters (financially or otherwise).


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