Apple Card has now celebrated its five-year anniversary, and the conversation about what’s next is gaining momentum. While the current Apple Card offers simplicity and ease of use, it lacks the exciting features found in high-end credit cards. Enter the concept of the Apple Card Pro—a premium credit card that could revolutionize the industry.
What is the Apple Card Pro?
The Apple Card Pro could be the next evolution of Apple’s credit card, targeting users who seek premium benefits such as travel rewards, lounge access, and exclusive offers. With Apple’s focus on boosting its services revenue, this higher-tier card could appeal to a wide audience while increasing profitability.
Current State of the Apple Card
A Simple Yet Effective Credit Card
The existing Apple Card provides 2% cashback with Apple Pay and 3% cashback at select merchants. While these features are helpful, they don’t set the card apart in a competitive market. Recent partnerships with ChargePoint and Booking.com add more value but fall short of creating a compelling ecosystem.
Challenges with the Apple Card
- Profitability Issues: Goldman Sachs, Apple’s banking partner, has reported losses exceeding $1 billion.
- Limited Benefits: While no annual fee is attractive, the lack of premium perks limits its appeal.
The Competitive Landscape
Major Players in the Market
Competitors like Chase Sapphire Preferred, American Express Gold, and Capital One Venture dominate the travel rewards space. These cards often require users to juggle multiple accounts for maximum benefits.
How Apple Card Pro Could Stand Out
Unlike competitors’ setups—such as the Chase Trifecta requiring multiple cards—Apple Card Pro could offer a streamlined experience. This would align with Apple’s ethos of simplicity and innovation.
Potential Features of the Apple Card Pro
Enhanced Reward Structures
- Earnings on Spending
- 1x points for physical card purchases.
- 2x points with Apple Pay.
- 3x points for dining and travel, a key draw for frequent travelers.
- Unified Ecosystem
- Rewards could integrate seamlessly with Apple services like Apple Music and iCloud.
- Partnerships with airlines and hotels could amplify point redemption options.
Travel Benefits – Apple Card Pro
- Priority Pass Lounge Access
- Access to over 1,600 airport lounges worldwide.
- Limited visits (e.g., 12 per year) to maintain affordability.
- Travel Portal
- A unified platform similar to point.me, simplifying point redemptions across partners.
Exclusive Perks
- Early Access to Events
- Exclusive presale tickets for concerts, sports events, and more.
- Apple Store Benefits
- Discounts on Apple hardware for cardholders.
Why Apple Card Pro Makes Sense
Addressing Profitability Concerns
The annual fee—potentially around $299, similar to the Amex Gold Card—could offset operational losses. With premium perks, the card would appeal to a broader audience willing to pay for added value.
Expanding Apple’s Ecosystem
Apple Card Pro could attract new users to Apple’s ecosystem, boosting overall customer loyalty and increasing cross-platform engagement.
How Apple Card Pro Could Compete
Simplification Over Complexity
The Chase Sapphire Preferred requires multiple companion cards for maximum benefits. Apple Card Pro could offer a single, powerful card that consolidates all rewards and benefits, simplifying the user experience.
Unique Selling Points
- Seamless integration with Apple Wallet and iOS.
- Focused partnerships with globally recognized travel and hospitality brands.
Drawbacks and Challenges of Apple Card Pro
Potential High Annual Fee
While $299 is competitive, it may deter casual users.
Establishing Partnerships
Building relationships with airlines and hotels is challenging, as seen with other banks like Wells Fargo and Capital One.
Future Possibilities of Apple Card Pro
Integration with Apple Pay Later
The Apple Card Pro could integrate with Apple Pay Later, offering interest-free installments on larger purchases.
AI-Driven Financial Insights
Using AI, the card could provide personalized spending analytics and suggestions for maximizing rewards.
Conclusion
The Apple Card Pro could be a game-changer, blending Apple’s innovation with premium financial benefits. By addressing the shortcomings of the current Apple Card and learning from competitors, Apple has the potential to create a highly desirable credit card.