News agencies are missing the point of Apples new credit card. But, we have a feeling we know exactly what Apple is doing with it:
Apple has built a credit card to market to millennials.
- The card is clearly set up to allow those with even fair credit.
- The card is transparent with no fees.
- The card offers an "exclusive" titanium card appealing to millennials.
- The card offers instant cash rewards.
- The card lets you easily manage and see your spending, helping millennials avoid their fear of debt.
- Most important: The card is built into the millennials' favorite toy - iPhone
Millennials have shied away from credit cards, in-turn they have been slow to build credit which many critics have said will cause problems for them (and to be fair, has caused problems for them) when they go to get loans for business, car, or home.
The reality is millennials seem to not care at the moment, they have a bad taste in their mouths for big banks since they have suffered from crippling student loan debt and a market crash that effected their perception of finances.
Credit cards for a millennial are like a necessary evil. If they get one it's because they feel they have to. Many completely shining away.
Yet, Apple may have just cracked the millennial code by providing transparency and a UX that a child could probably understand.
They may be one thing missing though...
There has been one other company that created an exclusive card that (surprisingly) drew a large base of millennials. That's Chase's Sapphire Reserve card. With a hefty $450 annual fee, why did this card attract so many millennials?
First, this card was metal. Millennials literally posted videos of them self's unboxing the card. This will happen with Apples Credit Card.
But second, the card was an experience, specifically a travel experience.
The card offered a massive 3 points per dollar on traveling and for dining out. Then an addition 1.5% when you redeem those points for travel. Then there is a $300 annual travel credit which would appear to make the $450 annual fee become $150, but it really made for a perk (or maybe even an excuse) for travel.
And when the card first came out it came with a whopping 100,000 points. That's $1500 in travel. That's a round trip ticket to most anywhere on earth.
These were just the start of the crazy amount of perks in the card, but certainly, they were the most important for the Sapphire Reserves success among millennials.
And this is also where Apple's card may be lacking. Even though the card will offer a simple experience, does it offer a millennial "dream" experience? Of course, there is still time to see where Apple's card will go. But we see what you're doing Apple... we see.
