Today, I received this email from Apple
Here’s something to cheer about: now you can save 3% at Nike every time you use Apple Card with Apple Pay. This includes all purchases at Nike retail stores, Nike Factory stores, and on nike.com and Nike apps.
It is quite a notable development. Apple Pay is already the number 1 mobile payment application, surpassing even the famous Starbucks application (Source: zdnet). Nike is one of the most popular brands in the world with more than 1,000 stores worldwide. In 2019, revenue from Nike Direct, which comprises of sales from retail stores, mobile applications and websites, reached more than $11.7 billion.
I did a quick search on the best cash-back credit cards. 3% cash back is among the most competitive offer for retail stores like Nike. Plus, you can earn 3% through mobile apps and websites. The extra 1% in addition to the standard 2%, and the convenience of using Apple Card through Apple Pay will surely spark consumer behavior.
It’s very interesting to see how many more major partners will join the 3% cash back list. Companies will monitor closely the popularity of Apple Pay among consumers and wonder if it will be beneficial to be left out. Once more partners join, Apple Pay will have a bigger appeal to prospective partners and more leverage. The cycle will keep going from there.
Disclaimer: I do own Apple stocks in my portfolio