Apple disrupts the banking space

Apple has entered the banking arena. The tech giant recently introduced its own Apple credit card, billing it as, “A new kind of credit card. Created by Apple, not a bank.” Apple’s messaging talks about the card’s simplicity, transparency, privacy, ease and security.

Apple claims this is the first credit card which encourages consumers to pay less interest, calling its interest rate “among the lowest in the industry.” It also says the Apple card can do things no other credit card can do, like give daily cash back on every transaction. With the recent release of the iPhone 11 and the 2019 holiday season getting closer, this card could take a bite out of financial institutions’ credit card profits.

It’s pretty clear the target demographic for this card is iPhone users, which translates to a large chunk of consumers. Apple has more than 100 million iPhone users in the United State alone. That’s about 45% of all smart phone users in the country and a reason for financial institutions to be concerned.


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