Case: Apple Card
Introduction
According to Armah et al. (2023), the financial service industry is undergoing a rapid major transformation as FinTech companies and digital wallets are increasingly challenging credit cards issued by traditional banks. Consumers preferences are shifting to a more seamless and digital payment solution that offers speed and while providing data insights to improve financial decisions (Armah et al., 2023). Traditional banks often struggle to compete in this environment as their services are strictly orientated to their legal systems and more complicated operating cycles, which significantly triggers a less intuitive user experience (Stulz, 2019). In contrast, various FinTech companies are offering a digital user experience, which is characterized by real time tracking, personal insights and integration within their smartphones (Armah et al., 2023). Within this trend Apple’s entry into the financial sector by launching the Apple Card illustrates how tech driven companies aim to digitally disrupt the classical financial services market (Apple, 2025).
Case: Apple Card
According to Apple, the Apple Card is more than just a credit card (Apple, 2025). The credit card, which was published in 2019, serves as a strategic addition to the Apple Ecosystem. The product allows the company to combine not only hardware and software but also financial activities within one user experience, which goes beyond classical banking systems (Apple, 2025). Apple Card builds up on Apple existing Apple Pay feature where people can make digital transactions across different merchants (Apple, 2025). In our lecture of session five, direct and indirect network effects were discussed. By collecting the data from users, Apple is specifically able to benefit from indirect network effects. The more customers make use of the card, the more data Apple gains, which significantly helps the company to optimize and enhance its features in various niches of its ecosystem.
Combining the fact of providing a digital platform while benefitting from network effects, the Apple Card has a huge potential to challenge the current banking sector. However, the Apple Card is still missing its breakthrough, as the accessibility of the product is still restricted (Apple, n.d.). This can be explained by the reason that the card is only available in the US right now. This means that many people cannot have access to the card right now, which indicates that its real potential is not reached yet.
Final Thoughts and Personal Opinion
Considering all points discussed, the Apple Card serves as an example how Fintech companies are able to disrupt the financial services market by bundling features of traditional banks with its own ecosystem. Despite the challenges, such as limited regional availability, the Apple Card serves as an example of how FinTech companies can disrupt the classical banking market in the long-term.
Referring to my opinion on this development, I want to mention that I would get an Apple Card once it is available in Europe. I am convinced of the convenience being able to access a fully integrated payment system that is included in my Apple Ecosystem and outperforms the functions of my daily credit card. In general, I am persuaded that FinTech companies providing a digital platform combined with financial services will significantly reshape the market. Different alternatives, such as Revolut, Paypal or N26 are already demonstrating how digital payments can revolutinze the financial sector.
Lastly, I believe that Finn Techs are not only able to provide a digital platform, but I also share the opinion that they are quicker to innovate and adapt to customer needs, which is why they will dominate the financial sector in the future?
Thank you for reading my blog. I am more than happy to answer any questions, and cannot wait to read your opinions and feedback about it.
Sources
Apple. (2025, August 28). Introducing Apple Card, a new kind of credit card created by Apple. Apple Newsroom.
https://www.apple.com/newsroom/2019/03/introducing-apple-card-a-new-kind-of-credit-card-created-by-apple/
Apple. (n.d.). Apple. https://www.apple.com/
Armah, G. K., Awonekai, E. A., Owagu, U. F., & Wiredu, J. K. (2023). Customer preference for electronic payment systems for goods: a case study of some selected shopping malls, Bolgatanga. Asian Journal of Research in Computer Science, 16(4), 257–270. https://doi.org/10.9734/ajrcos/2023/v16i4387
Stulz, R. M. (2019). FinTech, BigTech, and the future of banks. Journal of Applied Corporate Finance, 31(4), 86–97. https://doi.org/10.1111/jacf.12378
