Apple Card arrived yesterday with a limited invite-only launch. Now a new study from J.D. Power has taken a look at how consumers feel about Apple Card ahead of its full rollout this month, and the firm believes it should be a “hit.”
As it explained its latest survey, J.D. Power noted some of the challenges Apple is facing with its new credit card including the market having record high customer satisfaction rates with only 11% of customers switching their primary credit card so far this year. Further, the report notes that 45% of those who switched cards did it for “a better rewards program,” which isn’t necessarily one of Apple Card’s strengths.
Despite the intense competition in the credit card market, the survey results show Apple Card has a high level of awareness among US customers with over one-in-three who have heard about it likely to apply for it.
The Apple Card has not even launched yet, and 38% of U.S. adults are already aware of it. Among those who are aware of the card, 35% say that they are somewhat or very likely to apply for the card. Those numbers are even higher among younger credit card customers. Among 18-29 year-olds, over half (52%) are aware of the Apple Card.
An equal 52% of Apple Pay users say they’re “likely to apply for the Apple Card in the next 12 months.”
J.D. Power highlights that this is impressive without much marketing and Apple Card not being fully launched yet.
This is a strong level of awareness, especially for a product that is not yet available to the public and has not been heavily marketed.
It’s also notable that Apple looks set for success without following the industry standard of offering a sign-up bonus or a higly compelling rewards program. Instead, it’s offering a “no fees” approach and focus on privacy, security, and great user experience with what J.D. Power calls “competitive” rewards “but not the best in the industry by any means.”
The study believes one challenge for Apple will be shifting consumers’ habits from using a physical card to primarily using Apple Pay.
Overall, the firm predicts Apple Card will be a “hit” thanks to an impressive new user experience and the strength of its brand.
Despite an incredibly tight credit card marketplace, it looks like the Apple Card will be a hit because of the power of the Apple brand and a history of delivering on a superior user experience.
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