Apple is looking to get into the credit card business with the announcement of their new in-house credit card.
Announced at the Apple services event on March 25, 2019 and dubbed Apple Card, “it represents all things Apple stands for. Like simplicity, transparency and privacy” according to the official Apple Card webpage.
Powered by Goldman Sachs and Mastercard, Apple Card is promising consumers an improvement on the credit card experience by offering better rewards and lower interest rates compared to other credit cards.
By Apple and only for Apple users, people will be able to sign up on their iPhone through the Wallet app and use it with Apple Pay in a matter of minutes. The acceptance of Apple Pay among retail stores in the U.S. is constantly growing, with 70 percent expected to accept the payment form this year.
With Apple Card, customers will be able to keep track of their purchases, account balance, and how much of their payment is due right from the Wallet app. The wallet app can be found on all iPhones and iPads. Customers will also be able to see the exact location of a purchase if they don’t recognize a charge.
Besides it being a virtual card, consumers will also get a physical titanium card that is laser-etched with the users name. The card is essentially empty without a card number, CVV security code, expiration date or signature. All of that info is stored within the Wallet app.
According to Matthew Panzarino of TechCrunch, “Apple Card can generate virtual card numbers for online non-Apple Pay purchases … Apple provides a virtual card number and virtual confirmation code (CVV) for the card in the app. You can use this for non-Apple Pay purchases online or over the phone.”
Panzarino went on to say that, “This number is semi-permanent, meaning that you can keep using it as long as you want. But you can hit a button to regenerate the PAN (primary account number), providing you with a new credit card number at any time. This is great for situations where you are forced to tell someone your credit card number but do not necessarily completely trust the recipient.”
Unlike other credit cards where they offer a points-based rewards program, Apple Card offers cash back in the form of what they call Daily Cash.
“When you buy something, using Apple Card, you get a percentage of your purchase back in Daily Cash. Not a month from now, but every day. There’s no limit to how much you can get. And it goes right onto your Apple Cash card, so you can use it just like cash,” according to the official Apple Card page.
Apple offers three percent cash back on everything consumers buy from Apple, and two percent cash back on purchases made with Apple Pay. Purchases made with the physical card still warrant a one percent cash back deal, in case a store doesn’t accept Apple Pay.
When it comes to security and privacy, Apple wants it to be well known that they take it very seriously.
“Apple doesn’t know what you bought, where you bought it, and how much you paid for it,” said Jennifer Bailey, Vice President of Apple Pay.
All of the information with Apple Card is stored directly on the users device, not on Apple’s servers. Different credit card numbers are used if the user has multiple devices and users can access the PIN code with the use of Face ID or Touch ID.
Along with everything Apple Card offers, Apple also promises that their card will have no late fees, no annual fees, no international fees and no over limit fees.
Apple Card is slated for a summer 2019 release.
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