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Apple Card will not run Google, Samsung offers its own credit card


Apple CEO Tim Cook launches Apple Card.

Screenshot of Jessica Dolcourt / CNET

Apple on Monday introduced Apple Card a 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 have all introduced their own physical credit, debit and prepaid cards in recent years.

Probably all this excitement means good ole reliable cards Google and Samsung won It's not too far behind, with its 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 overwhelming features and it's unlikely to pull in more conservative consumers, say several payment experts. This means that its main payment rivals will probably not rush to bring competing cards.

"I doubt Google and Samsung are losing much sleep over this card," said Ted Rossman, analyst at CreditCards.com, a short comparison page owned by Bankrate.


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The Apple card comes at a time when the adoption of mobile payment services such as Apple Pay has stagnated for years, with most US customers instead choosing simpler money 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 again and again if a mobile option is available.

The physical Apple card can help solve the problem because cards are accepted at almost all stores. The card is an acknowledgment from Apple that mobile payments have not been 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 shows how the technology industry needs to work in the present when trying to launch the future. Technical companies such as Amazon builders are further proof that consumer habits take time to change and that there is still money to do with old-fashioned, uneven methods.

No Google or Samsung

Considering a potential Google or Samsung card, payment experts saw the most challenges for the two companies. The credit card industry is highly regulated and extremely competitive, which prevents the technical actors from simply entering. In addition, the company does not have the same fanboy-driven brand as Apple or a lot of its own stores, making things even more difficult for them to create waves in payments.

  Apple Card Provider

Look at the Apple card in the Wallet app.


"My guys at it is that they wouldn't necessarily jump in unless they saw that this Apple move was successful," said Matt Schulz, an analyst at CompareCards, a loan-owned slot comparison.

But Rivka Gewirtz Little, a payment analyst at the research company IDC, said she would not be surprised to see Google and Samsung show their own cards soon because big tech companies are looking for more ways to drive into the financial world and create more services to make people spend money.

"I see no reason why they wouldn't," she said. "I don't think there is any mistake in it."

Apple refused to comment on this story. Google and Samsung did not respond to a request for comment.


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Apple Card: Meh

Apple Card which will be available in the United States this summer, will get rid of annual fees, late fees, overheads, and international fees – but it raises your interest rate on you pay late. The card also offers daily cash rewards, with 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 has also used Apple Cards security features with every digital payment authorized by Touch ID or Face ID and a one-time security code. Apple will also not collect customer data on where they shop, what they buy or how much they spend. Apple merged with Mastercard and Goldman Sachs to offer the card.

Mastercard Speech Confectionery Chaiti Sen said her company expects to create more digital first cards like the Apple Card eventually 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 changing games and the other existing cards offer similar, if not better, benefits. The lack of a registration 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 steps," Rossman said. "I'm surprised they didn't go into anything."

Apple clearly wants to use the card to get more people to use Apple Pay and keep them loyal to their ecosystem for products and services. These experts did not think it offers enough to do so. Given that the move for Google and Samsung to move their own cards is not as good as if Apple had introduced a card that could shake up the card industry.

"It's definitely not enough for people to skip" Lite said about Android users. "It may be enough to make iPhone users stay a little longer."

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