It's Apple again when last week it stepped foot in the BNPL market (one of the trends of fintech in Vietnam in 2023), this week they announce participation in the battle between savings cards
The special thing about this card comes from its annual percentage yield (APY - with 4.15%). This is the third highest rate in this field (after only Bread Savings with 4.5% and Citizens with 4.25%).
Why Apple can be confident to give such a high percentage? And what are the strengths, weaknesses, opportunities and threats of this giant tech company in this market, let's find out with FinFan.
That is because in this product launch, Apple had a hand sack with Goldman Sachs (a big company in the financial world, which has been investing in many unicorn start-ups fintech just like MoMo - one of the 3 biggest ewallets in Vietnam).
Moreover, this product will contribute a large part to its ecosystem in the fintech market when before this it had Apple’s credit card, Apple's BNPL, Apple's digital wallet named Apple's Cash).
Apple is the biggest company in the smartphone technology market. The company has sold billions of hardware products globally over the years and is currently valued at around $2.61 trillion. Therefore, Apple has lots of capital to try new products or services
The company controls the App Store on every device sold thus providing a secure stream of income, with Apple's Cash and Apple Pay apps, customers can control well their savings without any attack from hackers outside of Apple's system.
Most important they have huge data of customers, who have been fans of Apple and are ready to use all of this technology brand products or services.
Launch slower than the market, Apple will spend more marketing costs for its new product (especially with Citizens - a big guy in the financial market).
Besides, in this segment, Goldman Sachs invests not only in Apple products (before this launch, Goldman Sachs invested in Marcus too).
This will take little effect on the competition of Apple and Marcus. That leads Apple to be not able to self-manage the card issuer when if the rival company has a higher number of users then Goldman Sachs will decide to invest in that company more than Apple.
The competition in Apple's main market maybe takes an effect on this product when Apple must always maintain the best position in the smartphone segment.
Relying on its customer advantage, Apple can expand the market quickly.
Moreover, another advantage, that can help Apple in this financial market is the App Store integrated into each smartphone
The closed circle of Apple products can also help this giant technology company when Apple can create more small services in this saving card such as saving for AirPod, MacBook, etc.
Too much reliance on Goldman Sachs can damage Apple. This giant technology may have the problems above when it competes directly with another project of Goldman Sachs.
Not over yet, Apple may get direct competition with arch-rival Samsung when Samsung has also the Samsung Wallet and Samsung card in the South Korean market.
With the above information, we can realize that the launch of the Apple saving card has more chances to be successful.
FinFan hopes that one day we can cooperate with this giant technology group to bring more new features to Apple fans in Vietnam (especially in cross border payment and remittance).