[The Editors' Verdict]The Real 'Apple Shock' Starts Now

Apple Pay is shaking up the domestic credit card industry. It goes beyond simply enhancing consumer convenience; it is changing the market order. A case in point is Samsung Electronics, the operator of Samsung Pay, showing signs of charging fees to credit card companies. MZ generation (Millennials + Generation Z) iPhone users have continuously asked why the easy payment available on Samsung Galaxy smartphones is not possible on the iPhone. The answer is simple. Samsung did not charge fees to card companies, but Apple does. Conversely, this means that credit card companies relied on Samsung instead of innovating their own payment systems.

The changes brought about by Apple are not limited to credit cards. The deposits Apple recently introduced in the U.S. are an even more formidable presence. Apple offers a 4.15% interest rate on deposits. Compared to JPMorgan Chase, a leading U.S. bank, which offers 0.1%, the difference is striking. Apple's emergence is expected to change the status that banks have enjoyed for hundreds of years. Even JPMorgan Chase, which stepped in as a savior during the recent banking crisis, can no longer feel secure.

The shift in the landscape is already evident. Apple CEO Tim Cook said last week that the initial response to the new Apple deposit product has been unbelievable. Meanwhile, U.S. banks saw $60 billion in deposits withdrawn in the first quarter alone. Despite Apple deposits not being covered by deposit insurance, money is pouring in. This phenomenon is linked to the recent anxiety among U.S. bank depositors about stability. Apple is now regarded as a safe asset. The perception of Apple as an “unbreakable fortress” holding a massive cash-equivalent asset of $165 billion is at work. It resembles the situation right after the 1998 foreign exchange crisis when funds rapidly flowed into large banks and some major investment firms. Consumers are that sensitive.

Apple devices, operating in the hands of billions worldwide, provide a foundation for Apple to transform from a company that merely produces consumer devices. The scope of transformation is gradually expanding. The music, news curation, and video services Apple has introduced so far may only be the beginning. Apple is launching more diverse services based on the foundation built by the iPhone. It is clear that the impact on everyday life will grow accordingly. It is often said that once you enter the Apple ecosystem, it is hard to leave. Until now, the influence was mostly limited to smartphones and computers, but that may change. Apple is even continuing to invest in health-related services. With financial and health information from billions of users, Apple could envision an even bigger picture. It is not impossible to assume that Apple might eventually offer loans like a bank.

At times like this, the role of the government as a market regulator becomes crucial. Apple deposits cannot simply be dismissed as a U.S. case. Our companies could also introduce such services. It is not enough to just impose regulations. Future-oriented policy responses that anticipate the impact on the entire market and industry are necessary. Already, concerns about overspending due to Apple Pay are spreading in the U.S. No matter how advanced a service is, side effects are inevitable.

Baek Jong-min, Opinion Editor

This content was produced with the assistance of AI translation services.