The Apple Card is an attractive product in the United States due to its interest rates and cashback percentage on purchases!
Apple has created an ecosystem of financial solutions that has been well received by users. After several years, Apple Pay has increased its expansion in several markets, however this has not been the same path followed by its credit card. Since its launch in 2019, The Apple Card has been a product exclusive to the US market.
Despite initial promises of global expansion and Apple’s efforts to register the trademark in various countries, this project has yet to materialize.
Europe: Apple Card’s first stop outside the United States
In 2022, rumors emerged that the Apple Card could soon land in EuropeThe acquisition of Credit Kudos, a British startup specializing in open banking, seemed to pave the way for Apple to obtain the necessary permits to operate as a credit institution on this continent.
However, regulatory procedures and The complexity of European financial systems has significantly delayed this process.
India: a strict partner
In 2023, the focus was on India. Several meetings between Tim Cook and the CEO of HDFC Bank have fuelled speculation about a possible launch of the Apple Card in the country. India, with its huge market and growing middle class, represents an undeniable growth opportunity for Apple.
But Indian banking regulations require that only banks can issue credit cards, which poses a significant challenge for the company.
Reasons why Apple Card is not launched in other countries
1. Regulations
Each country’s laws regarding credit cards imply a difficult and costly adaptation process for any financial institution that wants to operate in a new market. Even for Apple.
These regulations would force changes to even the physical characteristics of the Apple Card, which would not be able to maintain its minimalist design.In India, unlike in the US, Apple cannot bring a simple card with just the Apple logo and the customer’s name on the front. Regulations will require that the bank’s logo be on the front of the card, while Apple’s logo would be moved to the back.
2. Customer service
Apple Card was launched in 2019, an innovative product that offers cashback deals of up to 3% or more. While a refund of 3% or even more is not uncommon in the U.S. In Europe and in countries in other regions this financing model is not sustainable.
For comparison, in Europe, these fees are capped at a legal rate of just 0.2% for debit card transactions and 0.3% for credit cards. So there is simply no room to play in many countries. And this is a problem because As this is a premium product, Apple Card promotions must be launched in other markets as well.
3. Stability
The planned end of the partnership between Apple and Goldman Sachs in 2025 poses another challenge to the future of the Apple Card. Finding a new financial partner in the United States is already a challenge in itself, and international expansion could be further delayed. as Apple focuses on consolidating its internal operations.