Author Topic: Apple Card - New Apple Credit Card  (Read 4011 times)

Offline lindnuck

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Apple Card - New Apple Credit Card
« on: March 25, 2019, 01:32:23 PM »
Apple announcing a new credit card, with daily cash back at 2% for ApplePay purchases, 3% for Apple purchases.

No fees: late fees, forex, annual.

https://www.apple.com/apple-card/
« Last Edit: March 25, 2019, 03:29:38 PM by lindnuck »

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Re: Apple Card - New Apple Credit Card
« Reply #1 on: March 25, 2019, 01:36:39 PM »
Apple announcing a new credit card, with daily cash back at 2% for most purchases, 3% for Apple purchases.

No fees: late fees, forex, annual.

Are they forming a bank or is this a JV? After all they probably have more cash reserves of their own than most banks.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline lindnuck

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Re: Apple Card - New Apple Credit Card
« Reply #2 on: March 25, 2019, 01:40:06 PM »
Are they forming a bank or is this a JV? After all they probably have more cash reserves of their own than most banks.

It's a MC and the bank partner is Goldman Sachs.  https://venturebeat.com/2019/03/25/apple-debuts-apple-card-to-transform-the-credit-card-experience/

Offline Ephraimh

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Re: Apple Card - New Apple Credit Card
« Reply #3 on: March 25, 2019, 01:41:51 PM »
Are they forming a bank or is this a JV? After all they probably have more cash reserves of their own than most banks.
Goldman Sachs.

Keep in mind 2% is only when you pay with your phone, if you pay with the actual card you only get 1%

Offline Muhammad

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Offline lindnuck

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Offline chff

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Re: Apple Card - New Apple Credit Card
« Reply #6 on: March 25, 2019, 04:54:06 PM »

Offline greathummer7

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Re: Apple Card - New Apple Credit Card
« Reply #7 on: March 25, 2019, 06:37:34 PM »


Was hoping for more. Unless there’s more underneath the hood, looks like this is just another 2% back card. A lot to look at, not much to earn on.

Offline lindnuck

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Re: Apple Card - New Apple Credit Card
« Reply #8 on: March 25, 2019, 06:53:15 PM »
Was hoping for more. Unless there’s more underneath the hood, looks like this is just another 2% back card. A lot to look at, not much to earn on.

Agree, especially with no transfer partners. But since no AF might be fun to play around with, as the UI looks interesting.

Offline Thingywingy

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Re: Apple Card - New Apple Credit Card
« Reply #9 on: March 25, 2019, 09:09:42 PM »
Interestingly the cash-back is added daily.
I am sometimes accused of overthinking things. I am still mulling over whether that accusation has merit.

Offline chff

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Re: Apple Card - New Apple Credit Card
« Reply #10 on: March 26, 2019, 07:51:24 AM »


looks like this is just another 2% back card

A card that the Apple fans will go nuts and the media will report on it that's it's a card like never before


Offline Mordyk

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Re: Apple Card - New Apple Credit Card
« Reply #11 on: March 26, 2019, 08:58:47 AM »
Why would they go into credit cards? Wasn't steve jobs all about innovation and the future? he is probably twisting in his grave right now
#TYH

Offline Shauly101

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Re: Apple Card - New Apple Credit Card
« Reply #12 on: March 26, 2019, 09:52:17 AM »
Goldman Sachs.

Keep in mind 2% is only when you pay with your phone, if you pay with the actual card you only get 1%

will there be an actual card? my understanding was that it will be virtual only

Offline Ephraimh

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Re: Apple Card - New Apple Credit Card
« Reply #13 on: March 26, 2019, 09:53:15 AM »

Offline Ephraimh

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Re: Apple Card - New Apple Credit Card
« Reply #14 on: March 26, 2019, 10:04:47 AM »
That’s a lot of views in 20 hours.

Offline Mordyk

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Re: Apple Card - New Apple Credit Card
« Reply #15 on: March 26, 2019, 10:29:24 AM »

why Apple drives me nuts...  ::)

look you can schedule payments!! look you can see your spending categories!! look you get 2% cash back!!

and all dunces in the audience start clapping.  what are they clapping for? these things have been around for years. but once apple starts it it becomes wow?

(rant is over)
#TYH

Offline chff

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Re: Apple Card - New Apple Credit Card
« Reply #16 on: March 26, 2019, 10:35:39 AM »
these things have been around for years. but once apple starts it it becomes wow?

When Apple came out with Apple Pay everyone was WOW, you can pay with your phone? The media were hanging out in stores to see how people pay with their phones when in fact Android had it for a few years already. Wait till the Credit Cards gets issued as the media will be "wow, a card that you can pay with?"

Offline puddles

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Re: Apple Card - New Apple Credit Card
« Reply #17 on: March 26, 2019, 10:57:12 AM »
Doesn't seem like the street is as high on it as you think they are. I copied some of the commentary from 4 research notes.

JPM- Apple Card offers several customer  benefits that might trigger significant adoption. Although already mentioned previously in  press reports, the announcement yesterday surprised most  relative to  a  credit  card  (Apple Card) launched in partnership with Goldman Sachs and MasterCard. Apple Card will be available both digitally in the wallet app (could be used at locations accepting Apple Pay)  and in  the  form  of  a  physical  card, which could  be  used  at  locations not accepting Apple Pay (following on the lines of the Square Cash appand card). Apple will use on-device processing to allow users to track and manage transactions, as well as spending trends. The positives relative to the positioning of the card include absence of fees and differentiation of rewards through focus on daily cash backs. The introduction of Apple Card will allow the firm to leverage the growing adoption of Apple Pay and capture a greater portion of the fees in the payment ecosystem. The card is expected to be available to U.S customers starting in summer of 2019.

CITI- pple announced Apple Card built into the Apple Wallet app on iPhone.   Apple is partnering  with  Goldman  Sachs  (issuing  bank)  and  Mastercard  (global  payments network).    The  Card  offers  no  fees  and  very  attractive  rebates  (3%  for  Apple purchases in the AppStore, 2% rebates for payments made with Apple Pay and 1% for every other purchase made with the Apple Card).  Apple Card will be in the US this  summer.    Apple  has  also  designed  a  titanium  Apple  Card  for  shopping  at locations where Apple Pay is not accepted yet.   We expect interest in the card from its US customer base but note consumer behavior is very slow to change.

UBS- Apple Card and Apple Pay make Apple more part of consumers' daily life and increase stickiness  of  the  ecosystem  may  not  be  material  contributors  to  revenue.  Gaming  appears to be a bundle of paid games and may attract some new customers

GS- Apple Card interesting but small earnings impact for Apple. Apple announced a new credit card (“Apple Card”) which offers 3%/2%/1% cash back on purchases made directly-with-Apple/with-Apple-Pay/other-purchases. Even though Apple Pay is becoming more available we would still expect a large percentage of transactions to be done at the 1% return level (using the physical card) so we would expect the typical consumer to perceive the cash return rate to be OK but not great (vs. 1.5% on all transactions available on some competitor cards). Assuming a 35bp/dollar spent take rate (inline with a 20bps-50bps range based on industry checks), $1,000/user/month spend (roughly inline with Amex cards) and 21m users (~10% of iPhone installed base in the US), we estimate Apple Card could generate $882m in revenue and $0.12 in EPS (we show sensitivities in Exhibit 1 below). This would equate to just under a 1% uplift toCY20 FactSet consensus EPS

Offline greathummer7

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Re: Apple Card - New Apple Credit Card
« Reply #18 on: March 27, 2019, 06:40:31 PM »
will there be an actual card? my understanding was that it will be virtual only

Made out of titanium

Offline mmgfarb

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Re: Apple Card - New Apple Credit Card
« Reply #19 on: March 27, 2019, 11:35:29 PM »
The card has no CA fee, something to keep in mind...
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