Sina Technology Zheng Jun from the United States
I was received last week.appleCredit card Apple Card's advance invitation email. As a non-fruit powder loyal Apple user, after a little hesitation, he still applied for one. After getting the physical card last weekend, I used it a few times and had a direct experience. Although the application is really good and the design is novel, it is essentially a common retailer co-branded credit card in the United States, and there is no disruptive innovation. The main purpose of Apple’s launch of this credit card is to increase user stickiness, earn more revenue and promote Apple Pay.
The first question, how to apply for use?
First you have to have oneiPhoneAfter 6 (included) iPhone, the system is at least iOS 12.4. Open the Wallet app on your iPhone and click on the plus sign in the top right corner to see the option to add an Apple Card. Enter personal information such as name and address phone number, social security number, date of birth, etc., the partner bank of Apple's card, Goldman Sachs, will decide to approve or reject it within a minute or two. (The social security number can be found in your credit score, which is determined by your loan history, total loan amount, loan type, credit history length, new loan, overdue, etc.)
If the application is approved, you will need to useMobile phoneTake and upload photos of the driver's license (equivalent to the US ID card). The user can then see and use the newly applied Apple Card in Wallet. The titanium chip card with the chip will be sent within the next week. Unlike common phone activation methods, Apple Credit Cards only need to be touched by the iPhone and activated via the NFC chip.
It is worth mentioning that only medium and high-end credit cards are usually made of metal. Apple's credit card is full of design and materials, and is even more sinking than the Chase Reserve metal card that is common in the US market. The card design is minimalist, with only the Apple Logo and card owner name on the front and the Goldman Sachs and MasterCard logo on the reverse side. Perhaps because the income is not high, this Apple credit card only gave me a credit of $7,500.
When the payment is spent, open Wallet and select this credit card to make the payment. In businesses that do not support Apple Pay, you can swipe your physical card for payment. Interestingly, after you spend, the original white Apple credit card in Wallet will change color. Yellow means spending in restaurants or supermarkets, while entertainment-related consumption is purple. After each purchase, the specific credit data and detailed rebate amount will be displayed under the Apple Credit Card in the Wallet app. The rebate amount will be presented on the Apple Cash Card.
The second question, what is the Apple Credit Card?
Safety. Unlike other common credit cards, Apple Credit Cards do not have a card number, valid year and month, and security code. There are only the user's name and Apple's logo. The specific card number information is stored in the iPhone, which reduces the user's credit card loss or data leakage. The risk of brushing, after all, in the United States credit card theft is also commonplace, offline and online businesses are not likely to verify information, I personally experienced two stolen brush.
The Apple credit card stored in the Wallet application also needs FaceID to unlock to see the specific card number information, and the user can also change the card number at any time to prevent the possibility of stolen information. Of course, even if the Apple phone is lost, it can also find, lock and erase information remotely. This is equivalent to double protection.
Cash back. Apple credit card does not have an annual fee, and all consumption on the Apple Eco platform can be cashed back 3%, including hardware (Apple's official website and retail store, annual upgrade plan monthly), software (Mac Store, App Store, iTunes, Apple TV purchase application) , music and content), services (ordering Apple Music, News+Subscription, iCloud, and future Arcade, etc.).
If you are upgrading Apple hardware frequently, especially if you participate in the iPhone's annual upgrade plan, or if you are used to eating dead fruit powder in the Apple Store, then it is suitable to use this card. In addition, this card is used by Apple Pay and is refunded 2% at other retailers. Where Apple Pay is not supported, the physical card consumption can also be refunded by 1%.
In addition, Apple also announced today that Apple Credit Card also provides a 3% rebate for the travel platform Uber and the take-away platform Uber Eats. Uber's business covers 700 cities worldwide, while Uber Eats covers 500 cities. This cooperation was not mentioned by Apple before. It is clear that Apple is constantly looking for more partners to expand the scope of its credit card. This rebate has been consistent with JPMorgan Chase Reserve, known as the "God Card."
Visible. The third selling point of Apple's credit card is that the consumption and repayment data is clearly visible. Every purchase of this card, the specific information of the merchant, the type of consumption, the amount of the arrears, the time of repayment, and the overdue interest will be displayed in the Apple Wallet application, and the consumption will be clear at a glance. However, this is not an innovation. Common credit card applications such as JPMorgan Chase, or consumer financial applications such as Mint have similar consumption statistics.
The third question, what about other credit cards?
Why do I hesitate to apply? To put it simply, the MasterCard credit card that Apple and Goldman co-branded jointly launched is not a credit card with the value of “wool”. It doesn't seem to be a big deal to apply for a new credit card that doesn't have a lot of cash back points. And opening a credit card will lower the credit score. If the user already has a good credit card, then the consumer will also use the better-paid card.
First of all, although this card does not have an annual fee, it does not have a card reward. And compared to other credit cards, it costs less than $100, and more than $500 or more. If you spend a certain amount of money before the card is opened for 3 months, you can get a reward. Apple's credit card is really embarrassing. If it weren't for Apple's appeal, it would be hard to make people think about new cards.
Secondly, from the point of view of cash back, this card is only suitable for consumption on the Apple Eco platform, not the main credit card for daily consumption. Some well-paid credit cards provide 3%-4% rebate on daily consumption such as fuel, travel, supermarkets and restaurants. It’s obviously not affordable to take this card from Apple. After several years of expansion, two-thirds of retail stores in the US currently accept Apple Pay, but restaurants, gas stations and parking lots still require physical cards. Wal-Mart, the largest supermarket chain, refused to accept Apple Pay, mainly to support its own payments.
Again, buying Apple's hardware products doesn't have to be in Apple's official website and retail stores. And hardware consumption is the main force in Apple's ecological consumption. Originally, American consumers were more accustomed to buying iPhones from operators, and they could get better preferential conditions (such as new Internet access minus 200-300 US dollars, and the US port number transfer operation is extremely simple).
What's more, the price of Apple hardware is no longer strong, and third-party retailers will always cut prices over time. Buy online and offline retailers like Amazon, Best Buy, Costco, B&HiPadwithMacBook, can get a lot of discount prices than the official website, the discount far more than 3% of Apple's credit card cash back. The same is true in China, and there are many, Tmall,JingdongThe discount price is much lower than the official price of the official website.
The fourth question, is this a joint credit card?
In fact, Apple's credit card is too normal. US retailers are issuing a number of co-branded credit cards. For example, Amazon’s Prime credit card, which is jointly launched by Amazon and Visa, provides up to 5% rebate on all Amazon’s platforms, including Amazon’s previously acquired offline food chain, Whole Foods, and online shoe platform Zappos. Wait. If you are an Amazon Prime member and spend a lot of money, then this credit card is not to be missed. This card provides a 2% rebate for other restaurants, fuel, and supermarket consumption, and there is no annual fee.
Apple itself is the fourth largest online retailer in the US (the top three are Amazon, eBay and Walmart). Apple is also the most successful physical store retailer in the world. In February of this year, Apple had 506 retail stores in 24 countries and regions, including 272 stores in the United States. According to eMarketer's data in 2017, Apple retail stores sold $5,546 per square foot ($59,700 per square meter), nearly twice as much as Tiffany & Co, the second-ranked Tiffany & Co. ($2,951 per square foot). The average retailer's sales level is $325 per square foot.
The fifth question, what is the significance of Apple Credit Card?
Enhance user stickiness. Apple credit cards don't seem to be too demanding for user credit. According to US media reports, even users with a credit score of 620 can successfully apply for an Apple credit card. what does this mean? Apple hopes that this credit card will be as much as possible for ordinary consumers, even if credit is not relevant. (US credit scores above 850,800 points for credit is excellent, 740-799 is very good for credit, 670-740 is good for credit, 580-669 for credit, and 580 for credit)
According to US media reports, Apple considered the introduction of credit cards for users to purchase music in the iTunes era of 2004, but was not put on hold until an agreement was reached with the bank. This time, Apple issued a joint credit card, and hopes that Goldman Sachs will approve credit cards as much as possible within the scope of regulatory control. Apple has more than 100 million iPhone users in the United States.
Get more income. The retailer can bring a new user to the credit card company through a joint credit card and get a commission. A typical joint credit card for a US retailer, this commission usually exceeds $100. While Apple consumers usually have higher spending power, there is reason to believe that Apple can talk to Goldman Sachs about a higher commission. But every time Apple customers apply for a new card, they can at least give Apple a commission of $100 in commission.
Second, consumers use Apple credit cards to purchase Apple products, and Apple can get a fee rebate from credit card issuers and platforms. If there is no such card, the consumer previously used other credit cards to pay on the Apple Eco platform, and Apple needs to pay the fee to the credit card issuer and credit card platform company. US credit card fees average between 1.5% and 2.9%. The “wool” that consumers enjoy is also derived from the fee sharing that credit card issuers and platform companies receive from retailers.
Third, Apple can also get a certain percentage of credit card interest or fines caused by consumer installment or overdue payment. According to the credit status of each user, the interest rate of Apple Credit Card ranges from 12.99% to 23.99%. Compared with other credit cards, the APR rate of the Apple card is relatively low. Apple Credit Card provides 3% cashback for consumption on its own ecosystem. This means that users who apply for an Apple credit card will use this card to purchase hardware on Apple's official platform, if the official website price is not much different from other retailers' prices. However, of course, Apple will not suffer, they get a larger revenue share from this credit card.
Promote Apple Pay. Apple Pay is one of the service businesses that Apple has developed in recent years. Apple's credit card is almost deeply bound to Apple Pay, and all data is presented in the Wallet app. Every time a consumer spends $100 on Apple Pay, Apple gets a 15 cent commission. The more users use Apple Pay, the more revenue Apple can earn. Although it seems that the ratio is very low, if you consider the iPhone user's billions of orders of magnitude, then promoting Apple Pay can still bring considerable income to Apple.
According to Apple's latest quarterly earnings report, although iPhone revenue fell again by 12%, the service business revenue increased by 13% in the quarter, together with the outstanding performance of other businesses offset the negative impact of the decline in iPhone revenue. Apple was able to achieve revenue growth in the third quarter (second quarter). The service business has become Apple's second largest source of revenue and is still growing steadily. More importantly, the service business has a profit margin of 64%.
The last question, what is the application prospect of Apple Credit Card in China?
The credit card culture in the United States has been popularized for decades, and the public has generally accepted the awareness of borrowing and spending, but Chinese consumers still do not have such a culture. According to data from the China Payments Clearing Association, China’s per capita card holdings were only 0.44 in the first quarter of last year, compared with 3.16 in the United States, more than seven times that of China. To change the consumption habits of Chinese people quickly is not a one-off event, and it is not necessary.
Because, with the advent of the mobile payment era, Chinese mass consumers have jumped directly over credit cards and are used to paying through Alipay and WeChat payments in their daily lives. Even Apple China’s official website accepts payment methods from Alipay and WeChat. Perhaps Apple will also look for partners in China to issue co-branded credit cards, but in reality, the US Apple credit card is difficult to copy directly to the Chinese market.