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ReadersSpeak





        Apple's strategy for superior value chain control           with a slicker user interface. iMessage enables semi-
                                                                    social payments, similar to Venmo (we see Venmo as
                  ichard Crone and Heidi Liebenguth, CEO and        essentially a public ledger recording informal loans
                  managing partner at Crone Consulting LLC,         and repayments between friends and associates).
                  respectively, shared the following insights       3. Customized credit: you set the terms and can change
        R with us when Apple rolled out the Apple Card              them any time; you control speed of debt repayment
        on March 25:                                                and ultimate interest paid.

        "Apple Card is disruptive: It is to banking what the iPod   4. Rich cash rewards – richer for Apple Pay usage,
        was to the music industry, what the iPhone was to wireless   lesser for the EMV-only card.
        carriers, iPads were to the laptop industry, or what Uber   5. Transparent pricing and no fees.
        is to Taxis. This is a seminal moment in consumer credit    6. Ultimate responsiveness through text and response.
        history. Every financial institution is forced to compete and   The iPhone screen shows spending, along with trends
        collaborate with Apple. Apple Pay is the first responder    and  categorization,  and  enables  you  to  manage  all
        rendering consumer relief with:                             features on your phone.
            1. Instant issuance, mobile account origination. You
            can apply in the privacy of your own phone.         "Goldman Sachs is providing credit, just as Discover
            2. Three accounts in one: not just credit, but debit and   provides the prepaid account behind Apple Pay Cash.
            prepaid with P2P and ATM cash access, too. When     Apple is exerting branding control and providing a superior
            consumers open an Apple Card credit account, Apple   user interface for a responsive customer experience."
            also activates Apple Pay Cash and pays the Apple    Insights welcome
            Card reward daily. That stimulates instant usage of
            Apple Pay Cash, likely to be accessible via Mastercard's   Do you have informed insights about breaking
            Maestro ATM Network. It's essentially a new account   industry news? We will welcome your perspectives
            bundle: credit combined with debit and prepaid,     on issues of relevance to the payments community at
            following in the footsteps of PayPal and Venmo,     greensheet@greensheet.com.
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