Apple announces its own credit card, the Apple Card
Apple is looking to transform the entire credit experience with Apple Card, a new kind of credit card created by the Cupertino-based company, and built into the Apple Wallet app on the iPhone.
The newest addition to the line of Apple products aims to simplify the application process, “eliminating fees, encouraging customers to pay less interest and providing a new level of privacy and security,” a press release says.
A unique card number is created on the iPhone for Apple Card and stored safely in the device’s Secure Element, a particular security chip used by Apple Pay that offers a new level of privacy and security. Every purchase is authorized with Face ID or Touch ID and a one-time unique dynamic security code.
“Apple Card builds on the tremendous success of Apple Pay and delivers new experiences only possible with the power of iPhone,” said Jennifer Bailey, Apple’s vice president of Apple Pay. “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance.”
According to Apple, there are no fees associated with Apple Card (no annual, late, international or over the-limit-fees) and its “goal is to provide interest rates that are among the lowest in the industry, and if a customer misses a payment, they will not be charged a penalty rate.” Variable APRs range from 13.24% to 24.24% based on creditworthiness. Apple is also offering a rewards program, Daily Cash, which gives back a percentage of every purchase as cash on customers’ Apple Cash each day.
Customers can sign up for Apple Card in the Wallet app on their iPhone, and receive real-time views of their latest transactions and balance right in Wallet. Purchases are automatically totaled and organized by color-coded categories such as Food and Drinks, Shopping and Entertainment. Apple Card uses machine learning and Apple Maps to label transactions with merchant names and locations as well.
The tech giant also designed a titanium, laser-etched, Apple-designed credit card for shopping at locations where Apple Pay is not yet accepted. The physical version of the Apple Card has no card number, CVV security code, expiration date or signature on the card.
The Apple Card, which will be available in the US this summer, will have the support of Goldman Sachs and Mastercard. Both companies will provide the support of an issuing card and global payments network.
LEAVE A COMMENT »