# The Future of Apple Card: Investigating the Possibility of an ‘Apple Card Pro’
This year marks the five-year anniversary of the Apple Card, representing a key achievement for the tech company’s entry into the credit card sector. As the organization aims to enhance its services revenue amidst falling hardware sales, a pertinent inquiry emerges: what lies ahead for the Apple Card? Considering its existing profitability hurdles and Goldman Sachs’ forthcoming departure from the alliance, there exists a strong argument for Apple to contemplate the release of a premium credit card, potentially named the ‘Apple Card Pro.’
## Apple Card Today
At present, the Apple Card is crafted as a simple, no-annual-fee credit card that provides users with 2% cash back on transactions made through Apple Pay. It boasts a 3% cash back reward for purchases at Apple and selected partner retailers, prompting users to spend more within the Apple ecosystem. Recently, Apple widened its partner network by including ChargePoint and Booking.com, the latter enabling users to accumulate extra travel credits.
Despite its appealing features, the Apple Card has not emerged as a financial success for Goldman Sachs, which has reportedly faced losses exceeding a billion dollars since the card’s introduction. With Goldman Sachs preparing to exit the partnership, this opens a window for Apple to reevaluate its credit card approach.
## The Competition Landscape
In the space of general-purpose travel credit cards, significant contenders like Chase, American Express, Citi, and Capital One lead the market. These cards typically necessitate users to manage several accounts to optimize rewards, which can be inconvenient. Apple has the opportunity to simplify this by presenting a single, all-encompassing travel credit card that targets a wider demographic.
For example, the Chase Trifecta strategy employs three distinct cards that gather points across different categories, enabling users to consolidate their rewards. Apple could streamline this by instituting a cohesive rewards system that removes the necessity for multiple cards while still delivering competitive earning rates.
## Introducing ‘Apple Card Pro’
The idea of an ‘Apple Card Pro’ could center around travel rewards, positioning itself as a premium product in the credit card arena. To render this card attractive, Apple would need to forge partnerships with airlines and hospitality brands, a feat that has posed challenges for other financial institutions. Nevertheless, Apple’s robust brand and established ecosystem might facilitate these collaborations.
The suggested framework for the Apple Card Pro could comprise:
– **Earning Rates**: 1x points on all transactions, 2x points for Apple Pay purchases, and 3x points on dining and travel. This would encourage users to view the Apple Card Pro as their primary credit card.
– **Annual Fee**: Aiming for an annual fee around $299, akin to the American Express Gold card, could be justified by offering exclusive advantages.
## Travel Benefits and Perks
To boost the attractiveness of the Apple Card Pro, Apple could integrate a variety of travel-related advantages:
1. **Lounge Access**: Collaborating with Priority Pass to offer entry to over 1,600 airport lounges worldwide would be a considerable incentive. Capping visits at around 12 per year might strike a balance between accessibility and profitability.
2. **Exclusive Events**: Taking cues from American Express, Apple could grant cardholders early access to highly sought-after concert tickets and special events, enhancing the value of the cardholder experience.
3. **Unified Travel Portal**: Creating a centralized platform for users to search and redeem points across multiple partners would simplify the often tedious process of point transfers, improving user satisfaction.
## Conclusion
As the Apple Card reaches a crucial juncture in its development, the launch of an ‘Apple Card Pro’ could represent a strategic endeavor to seize a larger portion of the credit card marketplace, especially among travel enthusiasts. By concentrating on partnerships, competitive earning frameworks, and valuable perks, Apple has the potential to convert its credit card offering into an appealing option for consumers. As the financial services landscape continues to change, Apple’s creative approach could reshape the credit card experience, aligning with its overarching objective of boosting services revenue.
