Financial analyst Ted Rossman wrote an article examining the Apple Card a year after it launched, sharing positives and negatives.

Apple Card One Year Later

At the end, Mr. Rossman notes that ultimately the Apple Card has been a success and is a “solid entrant in a crowded market.” Here are his takeaways:

  • Positive – Apple Pay. Not just Apple Card; When it comes to contactless payments, the Apple Pay ecosystem is a win for Apple. Apple Card users can get 2% cash back using Apple Pay, and even 3% at select retailers.
  • Positive – Simplicity. Apple Card is simple to use and promotes daily cash back on all purchases.
  • Positive – Customer Service. Mr. Rossman specifically mentions Apple Card’s customer assistance program so customers can skip payments without interest during the pandemic.
  • Negative – Rewards. Apple has a small group of merchants that offer 3% cash back with Apple Pay + Apple Card, and Mr. Rossman notes most people are probably using the 2% and 1% rewards more frequently.
  • Negative – Growth. Despite Apple’s size, Mr. Rossman points out that Goldman Sach’s own analysts thought that Apple Card would have an “immaterial impact” on Apple’s 2020 earnings.
  • Positive – Credit Scores. Apple Card accepts a wider range of credit scores than other credit cards, and it’s a good choice for young people as their first card.

My own thought is that we should treat Apple Card as a service, and I expect the product to improve in the future.

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