Apple Card for the rest of us?
The most widely awaited of these would be the introduction of an upgraded Apple Card service with a new provider. The limitation of the Apple Card (other than the waning enthusiasm of card partner, Goldman Sachs and the long journey to find a new partnership with JP Morgan Chase) is that it is still only available in the US, despite global interest. It is challenging for Apple to meet that interest due to a smorgasbord of different data, financial services, and local regulations. Apple Card in India, for instance, would be challenged by local regulations that forbid banking partners from storing transaction data, while in Europe the reward structure would need to be revised to consider the much lower interchange fees charged for credit card transactions there.
Ultimately, whoever Apple works with on the service would have to accommodate credit risk and it’s probable the computer company will need to underwrite some of that risk. If it wants to expand this service internationally — perhaps with the provision of additional banking services in some nations — this would be a good use of Apple’s ongoing money mountain, enabling it to deepen its move into financial services.
A world of opportunities
Of course, Apple Card is far from the only service that could benefit from Apple’s decision to use cash more strategically. Beyond any potential AI acquisitions, the company could also take positions in streaming entertainment partners, for example; the ever-speculated on Disney purchase is just one of a multitude of options there, but Netflix also seems within Apple’s multi-billion dollar reach.
