The Apple card isn't competing with Mastercard and Visa -- in fact, it uses the Mastercard payment network. It's competing with credit cards issued by other banks on top of the MC and Visa payment networks (and AmEx/Discover, which unlike MC and Visa combine the payment network and card issuing).
I doubt the other banks are too afraid of Apple though, I didn't see anything so compelling about the Apple card that would cause it kill other credit cards. It's a slick product, but not game-changing the way that e.g. the iPhone was to entrenched phone makers.
Interesting. I thought it offer fairly good Cash Back, no Fees, no hassle, ease of use. Even if it manage to reach 10% of the US iPhone users it will be a serious damage to other CC. While I may not get the best Rebate and Points when using Apple Card, I don't think those few percentage are worth it for my privacy.
Look at the personal finance scene in the UK—it's one of the more vibrant markets for banking right now with the likes of Monzo, Revolut, Monese, and countless others. Convenience and simplicity has prior art there.
It's also disappointing though, because it means Apple is not competing as a separate entity. What we want is for Apple to jump in be an actual credit card company. Then for all of them to try to destroy each other. (Unfortunately, now that I think about it, there are probably legal reasons that Apple is restricted in this regard. That's a shame. Basically means that it's Mastercard and Visa forever.)
I'm fully aware this is an unpopular opinion here, but cryptocurrency is one answer to the conglomerates everyone is complaining about. Is it perfect, or even very good? No. But I use it regularly on major merchants and get stuff delivered without much hassle and pay for my VPSes without trouble.
People want an alternative that is as good as Visa/MC without the conglomerate control. That is not going to happen. You can't get 100% of the convenience of the major processors with 0% of the problems.
The images shown are labeled the "Apple Mastercard". So it's a Mastercard with Apple branding.
You could also argue that having multiple big entities doing payment processing is better for everyone to the extent that they are competing. I mean, Mastercard and Visa are undoubtedly going to pull every lever at their disposal to take out Apple. (And to take out Amazon and Walmart as well if they decide to jump into this thing.)
So rather than wishing that Apple were NOT a payment processor, I guess a better idea is to hope for the Walmarts, the Amazons, the Targets, etc to all jump in and join the cage match.