But, would it come to India?
Apple has been known to disrupt the market, whether it is through its technology or through its devices. But now Apple has decided to take it one step further with the Apple card. The Apple Card lives within the Apple Pay wallet app of the smartphone, and is nurtured in partnership with Mastercard and Goldman Sachs.
The Cupertino-based company is reinventing how we pay for things. The Apple Card, like any other Apple payment service, is available only to iPhone users. Every transaction is authorised with the user’s Face ID or Touch ID authentication and one-time unique security code. Apple Pay can track everything from expenditure, savings to the minimum due bill incurred using Apple Card.
Will it work in India?
Apple services including the credit card rely on iPhone and other Apple devices. The penetration of Apple products outside the US is not as significant as its counterpart the Android OS that eats up into the large chunk of users. This makes it incredibly difficult for Apple to rake in revenue from India. Even if Apple Card decides to launch in India, it might face challenges due to a small consumer market with merchants hesitant to install the required setup for Apple payment services.
It is also worth noting that India is now digitally equipped to support Apple’s payment services. It might be easy to rope in players like Amazon and Flipkart, but enabling the payment system across the retail chains could still pose a problem.
Does It Make Sense to Use the Apple Card?
Absolutely. For one, that it is making credit cards an affordable commodity. Apple has also done away with the charges associated with credit cards such as late payment fee, over-limit fee and joining fees. In addition, the interest rates are lower as compared to other financial counterparts.
The ultimate victory for Apple comes from cashback perks: 2 per cent cashback on transactions made from Apple Pay, and 3 per cent cash back on products offered by Apple, including purchases from the App Store. Like other Apple products, privacy receives a greater push with new security upgrades which trumps other credit cards. Users can make online payments without revealing their credit card number. So, in the case of Apple Card theft, the chances of fraudulent transactions are zero. The card does not feature a card number, CVV, expiration date or signature, standing apart in the credit card ecosystem.
Although Apple Card has several unique perks, to build a market in India, it has to establish a network of retail outlets who will support their payment mechanism. But before that, it needs a unique strategy to increase the market share of Apple devices in the country, for the simple reason that none of their services would work if people are not using their smartphone.