Hey everyone, it’s Mark. Apple could shake up the fintech world with an Apple Card expansion, checking accounts and more. Also: Google goes after Apple’s ecosystem strategy, Sony previews a car, and Apple gets ready for its first launch of 2022.
Last week on Power On: A look at the new products Apple plans to launch in 2022.
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Over 1 billion people already use the iPhone to digitally manage key parts of their lives. That includes monitoring their health data, controlling their home and even starting their BMW.
But the one area of daily life where Apple hasn’t gone as far as it should, is financial management. That’s not to say the company hasn’t done anything. In 2014, the company launched Apple Pay, which is now the most used U.S. mobile payments system. In 2019, it launched the Apple Card. It’s been well-received, but it’s no smash hit.
With its relationships with banks, credit card and checking account data from consumers, an image of trustworthiness and privacy and a history of taking complex tasks and making them simple, Apple has the building blocks to turn the iPhone and its ecosystem into the ultimate financial management tool.
First, Apple needs to launch its credit card outside of the U.S. We’re approaching the three-year anniversary of the Apple Card’s announcement, and it is surprising that a company once known for deal-making has been unable to expand that key offering.
Second, Apple has a lot of work to do on Apple Card itself. Since launch, the main upgrade has been the presence of monthly installment support for all of Apple’s main products. As I’ve written in the past, I suggest a higher-tier Apple Card+ with better rewards to take on the American Express Platinum and Chase Sapphire Reserve.
More importantly, it should continue working out the kinks in its backend with Goldman Sachs Group Inc. to make sure consumers get proper credit limits and aren’t rejected for arbitrary reasons. It should also boost its run-of-the-mill rewards program for 1%, 2%, or 3% cash back to an offer that is more valuable. Apple and Goldman make plenty of money from interest..[ReadMore…]