Apple hopes its incursion into payments will be a single player game

Apple hopes to attract customers to its Apple Pay service with a shiny, titanium lure. The Apple Card, created with Goldman Sachs, is a bedazzling kicker to a digital product. Why else would it offer a lacklustre version of services already available online?… There is no point waggling one in front of a reader when buying something in person. Rewards are less impressive, too. Transactions with a physical card earn 1 per cent cashback. Digital payments via Apple Pay get 2 per cent. For both Apple and Goldman Sachs the point of the card is visibility… Goldman Sachs can use its first foray into credit cards to show its commitment to personal finance. Apple Pay has had only middling success. In China, it has struggled to take on domestic mobile payment apps. At home it is less visible than Square and less popular than PayPal’s money transfer service Venmo… To move to the heart of Apple’s business, Apple Card must prove it can pull more customers into mobile payments. If it can, Apple Pay could become a far bigger money spinner than services such as music or news… Long term, mobile payments may edge out card payment providers. Apple has created its card with a bank. Ultimately, it hopes its incursion into payments will be a single player game.