Is Apple Card about to take a $1.5 billion dollar bite out of the Credit Card Business?
In what could be the first steps of a future not driven by iPhone sales since it’s initial launch in 2007, Apple’s recent keynote featured a critical new venture- The Apple Card. The Apple Card could be the next evolution in credit cards and may add a much-needed shot of adrenaline to the marketplace.
The keynote released this news on March 25th, and while we have a pretty good idea of the benefits Apple Card will provide it’s customers…the waters surrounding how Apple Card will affect your business are still about as clear as Mud.
But there are a few key points we can pick out of the consumer side that could be really good news for business owners.
While they have been rather tight-lipped about anything on the business side of Apple Card, the tiny 1% peer to peer transaction fee could hint at much lower transaction fees for merchants.
Apple Card Could save business owners thousands on chargebacks
Apple Card offers heightened security that includes geolocating exactly where transactions occurred inside of google maps- giving you a bird’s eye view that, for example, a charge like the one below turns from an indecipherable and anxiety-inducing string of characters
Into a simple trip to the local gas station.
This is HUGE for consumers…but even more so for business owners as one of the leading causes of chargebacks are “unrecognized” charges. This single feature from Apple Card could reduce chargebacks to a fraction of what they used to be… saving you as the business owner hundreds, thousands, or more.
Apple Gets a “Clean Slate” by partnering with Goldman Sachs
Apple may have scored big by partnering with Goldman Sachs for the Apple Card.
Both are going into this arrangement with a “clean slate” as Goldman Sachs has never before issued consumer credit cards.
Unfortunately, it is still too early to see if this new card will fuel the evolution of a new wave of “digital cards” or not But Goldman Sachs is a company that knows business, and I expect this partnership to bring great things for both consumers and business owners.
As an added benefit, this “new player” could cause a much-needed competition in credit card providers and we may see reduced transaction fees in the very near future.
The Apple Card won’t release until the summer of 2019 and there are still many more details to be worked out on the business side of Apple Card.
So far, Apple has focused solely on the consumer-facing side of their new card ( which is logical as you have to get people to buy into Apple Card first).
Apple has yet to comment on the transaction fees that merchants can expect, but remember that they are essentially starting with a blank slate from Goldman Sachs, business owners could see a lift in profits once Apple Card has been released.
But, rest assured that we are keeping a close eye on Apple over the next few months as they gear up for the release of Apple Card. For more information on credit services please visit https://www.sofi.com/credit-card/.
Please check back as we will update this article when new information becomes available