Over the year, some of the biggest tech companies in the world have made forays into businesses that are starkly different from their core business and managed to make it a complete success. For instance, Apple entered into the music industry by way of the iPod and iTunes and eventually changed the world of music forever. Hence, when a company like Apple makes certain moves, then it is almost a given that there are larger implications in place. This month Apple launched its own credit card in partnership with Goldman Sachs and many experts now believe that it could be the company’s attempt to enter the finance industry in a bigger way.
It is believed that some of the features that are being offered by Apple could also have a massive impact on traditional credit card businesses in the world. For instance, features like ‘daily cash’ and zero fees could prove to be revolutionary. These are features that will ultimately have to be adopted by credit card companies if Apple’s credit card proves to be a success. In addition to that, the fact that the virtual credit card is also integrated into the Apple Pay app and gives customers a lowdown on his spending makes it an innovative service. At the end of the day, Apple’s foray into payments with Apple Pay was sure to be followed with an entry into sectors which are traditionally dominated by banks. An analyst at Creative Strategies said as much. He said,
The opportunity for Apple to insert themselves into payments was clear with Apple Pay, and extending into the banking arena is a natural progression.
In addition to that, Apple has partnered with one of the most powerful banks in the world in the form of Goldman Sachs, and that is a partnership that could prove to be incredibly fruitful over the long run. However, for the time being, it is clear that Apple has made a move that could eventually have far-reaching consequences for the entire credit card industry in the long run. Only time will tell how the legacy credit card companies are going to react.