The latest is how Apple provides incentives for customers to use Apple Card. Already, Apple Pay kills PayPal and everyone else in the U.S. mobile payments industry, including Samsung and Google. So, what about Apple the Bank?
Apple is a master at product marketing stickiness. Think about it. With marketshare that looks anemic compared to Android-based smartphones, Apple has a lock on industry revenue and profits. Now, smartphones have reached a saturation point so users are not upgraded as quickly as they did in the past, and Apple responded with two new revenue and profit categories– Services and Wearables.
Included in the latter are the popular AirPods and Watch. In the former its Apple Music, Apple Pay, and Apple Card.
All of those pieces stick together in a way that gets Apple’s growing customer base to spend even more money. On Apple.
Apple Card is the perfect example. The 2-percent and 3-percent cashback beats some of our current credit cards, so when Jesse I signed up for Apple Card we started moving some monthly payments over to Apple to get some cashback. We’re on the iPhone Upgrade Program and that requires a credit card, so we switched that over to Apple Card, too.
Here’s where Apple gets very sticky.
CEO Tim Cook announced that Apple Card customers will be able to buy a new iPhone from Apple Stores using Apple Card and getting the 24-month installment plan but with no interest.
Plus, 3-percent cashback.
The iPhone Upgrade Program also runs for 24-months, can take Apple Card as the preferred monthly payment method, also gets cashback, but includes Apple Care.
When it comes time to buy a new Mac, or a new Watch, or upgrade to new AirPods, guess how we plan to pay?
About the only difference between a bank and Apple’s Apple Card bank is deposits. Apple does not accept deposits but it does accept payments. That got me to wondering a bit about the mechanics of automatic monthly payments in Apple Card. Could Jesse use her card to pay my Apple Card balance? Then, could I use my card to pay her Apple Card balance?
Sure, the monthly balance will grow like crazy for a while, but look at all the fun we could have with our new banker. At least, until there is more month left over at the end of our money.