Apple Card and Loyalty

Mar 29, 2019

Apple Card is predicted to be a ‘game-changer’ in the payments market with a range of announcements this week each being hyped as category-killers in their respective markets. With sales of their iPhone stalling, the company needs some good news to keep the analysts happy.

In summary Apple announced the following:

§  Apple Card + Wallet: Apple says that its goal is to help you learn more about your spending, with less effort. For instance, the company is using a combination of machine learning and location services to help make card statements more readable.

§  ‘Daily Cash’: One of the most interesting things about Apple Card is its daily rewards platform. Apple says that customers will get “Daily Cash” when they shop with Apple Card. This means that cash back is credited directly to your Apple Pay Cash card on a daily basis.

§  Fraud detection: If Apple detects a potentially fraudulent payments, it will send you a push notification immediately. From there, you can report a problem or mark the transaction as “OK.” Apple Card also integrates with Apple Business Chat. This means you can easily communicate with support directly through the Messages app.

§  Apple Card fees: Apple says there are “no fees” with Apple Card, but that doesn’t take into account the interest paid for credit.

Apple is one of a select group of brands that can provide payment services that appeal to its global audience as a ‘cool’ means of differentiation.  The benefits of the Apple Card rewards programme are significant, 1-3% cash back. But at the end of the day, it’s the integration and cache of payment through a mobile device that win through with an audience hungry for innovation.

One other stand-out statement within these announcements is the commitment by Apple not to share data with marketers and advertisers. We’re clearly seeing some evidence that data gathering has perhaps gone a little too far for some consumers.

The Apple Card is a step towards an innovative combination of payment, loyalty and mobile services. Watch this space.