On March 25, Apple (AAPL) announced that it would launch an Apple-branded credit card, known as Apple Card, this summer in the United States. Apple’s titanium, laser-etched Apple Card will be backed by Goldman Sachs (GS) and Mastercard (MA) and will be integrated with Apple Pay and the Wallet app, which means that users can track their daily spending across devices.
Apple competes with retailers such as Amazon (AMZN), Walmart (WMT), and Costco (COST) in the branded credit card space. However, the credit card’s usage will be limited to iPhone users, as Apple Pay and the Wallet app run only on iPhones.
Apple saw over 1.8 billion Apple Pay transactions during its first quarter of fiscal 2019 (which ended in December) owing to the growing reliance on online services and the rising usage of mobile payment methods. CEO Tim Cook, therefore, believes that Apple Pay will likely hit more than 10 billion transactions in 2019. Apple Pay has been widely accepted in the United Kingdom, Russia, and Australia, and it’s expected to expand in more than 40 countries by the year’s end.
Apple Pay competes with Square (SQ), Alphabet’s (GOOGL) Google Pay, Amazon Pay, and PayPal’s (PYPL) Venmo for mobile payments. Each has a peer-to-peer payment service. According to Statista, the transaction value of the worldwide digital payments market is expected to reach $6.7 trillion by 2023.