In partnership with Mastercard and Goldman Sachs, Apple have unveiled a possible game changer in ‘Apple Card’ – a new credit card created by the tech giant designed to help customers “lead a healthier financial life.”
Apple plan to “transform the entire credit card experience” by simplifying the application process, eliminating fees, encouraging customers to pay less interest and providing a new level of privacy and security.
Apple Card is built into the firm’s Apple Wallet app on iPhone and features the security technologies of Apple Pay with support available 24/7 by sending a text.
The card will also utilise machine learning and Apple Maps to label transactions with merchant names and locations that are then organised by color-coded categories in a bid to help customers better understand their spending.
There will be both an iPhone and physical version of the card.
The California-based company state there are no annual, late, international or over-the-limit fees. Its goal is to provide “interest rates that are among the lowest in the industry.”
Available in the US this summer, Apple Card will also offer its own rewards program dubbed ‘Daily Cash’ which gives back a percentage of every purchase as cash.
Every time a customer uses the card with Apple Pay, they will receive 2% ‘Daily Cash’. Customers will also get 3% Daily Cash on all purchases made directly with Apple.
Non-Apple Pay purchases made with the titanium card will get 1% cashback, which is immediately deposited into the customers account.
“Apple Card builds on the tremendous success of Apple Pay and delivers new experiences only possible with the power of iPhone,” said Jennifer Bailey, vice president of Apple Pay.
A unique card number is created on iPhone for Apple Card and stored in the device’s Secure Element – a security chip used by Apple Pay.
Each purchase is secure and authorised with Face ID or Touch ID and a one-time unique dynamic security code.
Furthermore, Apple said that the “unique security and privacy architecture” means the firm cannot access information such as knowledge of where a customer shopped, what they bought or how much they paid – acknowledging possible privacy fears.
Bailey continued: ““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.”
Goldman Sachs and Mastercard
Apple is partnering with Goldman Sachs and Mastercard to provide the support of an issuing bank and global payments network.
“Simplicity, transparency and privacy are at the core of our consumer product development philosophy,” said David M. Solomon, chairman and CEO of Goldman Sachs.
“We’re thrilled to partner with Apple on Apple Card, which helps customers take control of their financial lives.”
Mastercard will provide cardholders the ability to shop at merchants around the globe enabling the card to be used at locations where Apple Pay is not accepted yet.
Apple claims its card is more secure than any other physical credit card due to their being no card number, CVV security code, expiration date or signature
Ajay Banga, president and CEO of Mastercard commented: “We are excited to be the global payments network for Apple Card, providing customers with fast and secure transactions around the world.”
