Apple Card's stellar launch could help it weather competition concerns - Business Insider

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Apple Card's launch was 'the most successful credit card launch ever,' per Goldman Sachs CEO David Solomon:

The card's early success may mean it's set to boost Apple Pay's popularity.

Potential antitrust concerns surrounding Apple and Apple Pay could make it harder for the mobile wallet to drive adoption, but Apple Card could safeguard against any negative impact. The European Commission is looking into whether Apple favors its mobile wallet, which could lead to regulation that limits Apple's ability to push consumers to use Apple Pay.

If it takes issue with Apple's practices, it could lessen the firm's ability to drive Apple Pay usage by limiting what kind of promotions it can do and requiring it to allow other payments firms to enable NFC-based payments from the iPhone wallet, as two examples. Australian banks previously for the latter but their request was rejected by Australia's competition regulator, though the direct involvement of the Commission, in this case, could make different results more likely.

If Apple's required to stop favoring Apple Pay, Apple Card can ensure consumers still use the wallet, making its adoption extremely important. Once consumers sign up for Apple Card, they'll likely use Apple Pay more, limiting the impact of Apple having to enable NFC payments from third parties on iPhones and no longer highlighting Apple Pay.

This could make Apple Card's reported early success extremely valuable, and should make furthering its adoption a priority for Apple going forward, which means it may want to accelerate any plans it has to expand to Europe, something it's

 

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