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- Apple announced its move into banking with the imminent launch of Apple Card, a primarily virtual card issued by Goldman Sachs in partnership with Mastercard, that will sit on all Apple devices in the Apple Wallet but will probably be largely used via the iPhone or Apple Watch.
- Apple announced its move into banking with the imminent launch of Apple Card, a primarily virtual card issued by Goldman Sachs in partnership with Mastercard, that will sit on all Apple devices in the Apple Wallet but will probably be largely used via the iPhone or Apple Watch.
Today Apple announced its move into banking with the imminent launch of Apple Card, a primarily virtual card issued by Goldman Sachs in partnership with Mastercard, that will sit on all Apple devices in the Apple Wallet but will probably be largely used via the iPhone or Apple Watch. Unlike standard credit cards, this card won't take a few days to arrive in the post. It will land on the user's screen dashboard ready for spending within minutes of signing up. A hard copy version of the card – made from titanium – will also be mailed out to be used where Apple Pay is not acceptable.
Apple has always taken an intuitive approach to everything it designs and the Apple Card is no different. The main criticism of credit cards has always been their propensity to encourage users to spend more than they earn so that they can not afford to pay off the balance each month and rack up huge debts. The Apple Card is designed to help users 'lead a healthier financial life.' With no annual fee and a promised low-interest rate, it aims to make spending easier to track with an instant onscreen statement update available via the Wallet app, so that users can be always aware of how much they owe and better manage their debt. There is also the option to pay off the balance in between standard payment intervals and there are weekly and monthly spending updates divided into categories, such as food and drink, shopping and entertainment, so that users can see exactly where their money is going.
And, while many other cards offer rewards in the form of monthly or annual vouchers, air miles or cashback, the virtual Apple Card will reward users with a 2% instant cashback daily. This Daily Cash can be used to instantly pay off the card balance, for additional spending or even gifting to others. Any spending with Apple direct will reward users with a 3% daily cashback. And, any spending made with the hard copy Apple Card will be rewarded with 1% instant cashback.
This should be one of the most secure credit cards on the market, with each Apple Card's unique card number stored in the iPhone's Secure Element security chip used by Apple Pay and all purchases requiring authorization via Apple Face ID or Touch ID and a one-time unique dynamic security code. The way the Secure Element security chip is created, means that Apple has no access to the user's purchasing data.
The card will be rolled out first in the U.S. over the summer and then likely launch in other Apple Pay global markets soon after.
The tech giant's move further into finance has been seen as a logical next step following the successful launch of Apple Pay. It will likely be popular with the youth market, those who are keen to move over to a cash-free life and fans of the comprehensive Apple experience, but there are signs that some are tiring of Apple's joined-up all-encompassing offerings and this new launch will do nothing to reengage them. Amex and Visa will be watching take up carefully, however.
