Sunday , September 15, 2019

Consumers Are Receptive to the Unconventional Apple Card, Separate Studies Show

Apple Inc.’s new Apple Card is an unconventional animal with what some observers call ho-hum rewards, but separate studies released Wednesday show the card nonetheless could make a big splash.

Research firm J.D. Power said its late June survey found “awareness is already remarkably high” for a product that offers “middle-of-the-road” rewards compared with other cards.

“The Apple Card has not even launched yet, and 38% of U.S. adults are already aware of it,” Costa Mesa-based J.D. Power said in a news release. “Among those who are aware of the card, 35% say that they are somewhat or very likely to apply for the card. Those numbers are even higher among younger credit card customers. Among 18-29 year-olds, over half (52%) are aware of the Apple Card.”

The results are based on an ad-hoc survey of 1,354 consumers in late June.

Cupertino, Calif.-based Apple announced the card in March followed by a limited release this week, with full rollout expected later this month. The numberless titanium Mastercard, issued by Goldman Sachs Bank USA, is closely integrated with the Apple Pay mobile-payment service. Apple, in fact, strongly encourages use of its iPhone and Watch for in-store purchases charged to the card.

J.D. Power says its studies show about 11% of adults report using Apple Pay in stores. “Perhaps not surprisingly, 52% of Apple Pay users say they are likely to apply for the Apple Card in the next 12 months,” the release says.

Apple Card doesn’t have fees and offers 3% cash back on Apple purchases, 2% for Apple Pay purchases, and 1% on other purchases. J.D. Power says the card has “a competitive package of rewards and benefits, but not the best in the industry by any means … the challenge for Apple will be to change the credit card purchase habits of consumers to use Apple Pay rather than a physical card.”

Separately, New York City-based consulting and research firm Auriemma Group said its May-June survey of 2,029 adults with smart phones or wearable devices that support mobile payments found that about half of Apple Pay users were aware of the card. In a news release, Auriemma called that finding “an extremely high proportion considering the card has not yet launched.” Awareness also was high, at 27%, among all respondents eligible for mobile payments, Auriemma said.

Apple on Tuesday posted several videos on how to apply for and use the Apple Card.

Check Also

With Momentum From Transit, Contactless Accounts for a Rising Share of Card Payments

With card-based transit payments picking up steam in the United States, a key Mastercard Inc. …

Do NOT follow this link or you will be banned from the site!