Apple on Monday introduceda credit card that exists as both a virtual card in Apple's Wallet app and a physical card (to be fair, it's titanium not plastic). Apple's cards come out after digital money companies PayPal, Square and PayPal-owned Venmo, introduced all their own physical credit, debit and prepaid cards in recent years.
Surely, this excitement for good ole reliable cards is that Google and Samsung won’t be too far behind, trotting out their own Google Pay Card and Samsung Pay Card, right? Well, not so fast.
Wipe off the Apple mystery, and you're left with a credit card that has many features and it's unlikely to pull into losing consumers, say several payment experts. This means that the competitors in the main payment will probably not rush to come up with competing cards.
"I doubt that Google and Samsung lose a lot of sleep over this card," said Ted Rossman, analyst at CreditCards.com, a brief comparison site owned by Bankrate.
The Apple card comes at a time when the decision of mobile payment services such as Apple Pay has stagnated for many years, with most US customers instead of easier cash or cards. The lack of ubiquity is a major obstacle to mobile payments, as many customers would rather pay at checkout with what they know will be accepted, not ask over and over again if a mobile option is available.
The physical Apple card can help Solve that problem, since cards are accepted at just about every store. The card is a confirmation from Apple that mobile payments have not caught on just yet. Less than a third of iPhone owners have used Apple Pay at least once, according to a study by PYMNTS.com.
The Apple card also illustrates how the technology industry needs to work in the present while trying to usher in the future. Technical companies such as Amazon store stores are further evidence that spending habits take time to change and that there is still money to be made with old-fashioned, nondigital methods.
No Google or Samsung
Given a potential Google or Samsung card, Payout Experts experienced the most challenges for the two companies. The credit card industry is heavily regulated and extremely competitive, and prevents tech players from simply diving. In addition, none of the companies have the same fanboy-fueled brand as Apple or a bunch of proprietary stores, making things even more difficult for them to create waves in payments.
"My gut on it is that they wouldn't necessarily jump in unless they saw this Apple move was successful," said Matt Schulz, an analyst at CompareCards, a LendingTree-owned map comparison site.
But Rivka Gewirtz Little, a payment analyst at IDC research firm, said she would not be surprised to see Google and Samsung show their own cards soon, since big tech companies are looking for more ways to push into the financial world and create more services to get people to spend money.
"I see no reason why they wouldn't," she said. "I don't think there are any mistakes in doing so."
Apple refused to comment on this story. Google and Samsung did not respond to a comment request.
Apple Card: Meh
Apple Card that will be available in the United States this summer, gets rid of annual fees, late fees, over-limit fees and international fees – butif you pay too late. The card also offers daily cash rewards, 3 percent back when you buy directly from Apple, 2 percent back when you pay through Apple Pay and 1 percent back when you pay with the card.
The company also spied on the Apple card security features, with each digital payment approved using the touch ID or face ID and a one-time security code. Apple will not collect customer data on where they shop, what they buy or how much they use. Apple joined Mastercard and Goldman Sachs to offer the card.
Mastercard Spokeswoman Chaiti Sen said her company expects to create more digital first cards like the Apple Card in the end, but confirmed that Mastercard only works with Apple on such a concept right now.
Several payment analysts believed that the Apple Card features were far from betting, and the second, existing card, offers similar, if not better, benefits. The lack of a sign-up bonus – typically these days for a credit card – was seen as a missed opportunity.
"Many Apple card stuff just feels like a series of half-roofs," Rossman said. "I'm surprised they didn't do anything for anything."
Apple will clearly use the card to get more people to use Apple Pay and keep them loyal to their ecosystem for products and services. These experts didn't think it offered enough to do it. Given that the pressure for Google and Samsung to move on their own cards is not as big as Apple had introduced a card that could shake the card industry.
"It's definitely not enough to make people skip," A little said about Android users. "It may be enough to make iPhone users stay a little longer."