US Insights

Apple credit card interest wanes

Greg Flemming

SVP, Financial Services Group

Brands 03.10.2020 / 09:00

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Just 24% of US consumers expressed interest in the Apple Credit Card last month.

The new Apple Credit Card launched with great fanfare late last year -- Goldman Sachs CEO David Solomon called it the “most successful credit card launch ever” -- but the latest Kantar tracking shows that interest in the innovative new card has started to wane.

Just 24% of US consumers with a smartphone expressed interest in the Apple Credit Card last month, down from 37% in both November and December. To date, about 10% of consumers with an Apple Pay-enabled iPhone (about 4% of US consumers with a smart phone) have applied for the new Apple Card.

The Apple Card promised a brand new payments experience (“unlike any other card”): a digital credit card that customers apply for right on their phone, an accompanying physical card, for those who want it (made of Titanium rather than plastic), and cash back rewards that accumulate on a daily basis.

What have we learned from the first several million consumers who applied for the Apple Credit Card?

It’s easier to apply for.

Apple Pay users get an "Apply for Apple Card" prompt on their iPhones and can do that with just a few clicks. Customers enter their information and, if approved, are shown a credit limit and APR, which they can accept or decline. Once accepted, cardholders can start using the card immediately with Apple Pay. Fully 77% of new applicants said the Apple Credit Card was easier to apply for than other cards -- and almost all of those said they were approved instantly (within a few minutes).

Sure, it’s a digital card -- but most want a physical credit card, too. 

Almost all consumers who applied for the Apple Credit Card requested the physical Titanium card, too.  Fully 80% requested the physical card when they first applied, and another 5% requested the physical card after their application was completed.

The Apple Card is first in digital wallet -- but not necessarily overall. 

Not surprisingly, 76% of cardholders say the Apple Credit Card is the default card in their Apple Pay wallets.  But fewer than 30% of new cardholders say the Apple Card is their primary card overall, across all types of purchases. Cardholders who also own a Chase card are least likely to use their new Apple Card as their top-of-wallet card (many use Chase Freedom or some other cash back card as their primary card).

For more on this study, reach out here.

Source: Kantar

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