Today Apple announced an innovative new kind of credit card that was designed to help customers with a healthier financial life. The Apple Card was built into the Apple Wallet on iPhone so it will be familiar to users who already use the platform for their purchases.
The Apple Card application process has been simplified and it does not have any annual fees. Plus the card encourages customers to pay less interest and it provides a new level of privacy and security.
Set to arrive this summer, the Apple Card provides a number of rewards — of which the Daily Cash feature is the most compelling. The Daily Cash feature gives back a percentage of every purchase as cash on customers’ Apple Cash each day. The Daily Cash can also be sent to friends and family in Messages.
Whenever customers use Apple Card with Apple Pay, they will receive 2% Daily Cash. And customers will also get 3% Daily Cash on all purchases made directly with Apple such as Apple Stores, the App Store, and Apple services.
“Apple Card builds on the tremendous success of Apple Pay and delivers new experiences only possible with the power of iPhone,” said Apple Pay vice president Jennifer Bailey. “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.”
You can sign up for the Apple Card from within the Wallet app within minutes and start using it with Apple Pay right away in stores, in apps, and online worldwide. And Apple Card gives customers real-time views of their latest transactions and balances right in Wallet. You can also get support through text messages.
Apple Card – Credit: Apple
Apple Card also uses machine learning and Apple Maps to label transactions with merchant names and locations. And Purchases are totaled and organized by color like Food and Drink and Shopping and Entertainment. Apple Card provides weekly and monthly spending summaries for monitoring spending habits.
And Apple Card does not have any annual, late, international, or over-the-limit fees. The goal is to provide interest rates that are among the lowest in the industry and if a customer misses a payment, then they will not be charged a penalty rate. Apple customers will see a range of payment options and it calculates the interest cost on different payment amounts in real time. Apple Card will also suggest paying a bit more every month as a way to pay less interest. Plus it offers the flexibility to schedule more frequent payments.
Apple Card payment plan – Credit: Apple
For security purposes, the Apple Card has a unique number created on iPhone and it is stored safely in the device’s Secure Element — which is a special security chip used by Apple Pay. All of the purchases are secure because it is authorized with Face ID or Touch ID and a one-time unique dynamic security code. The unique security and privacy architecture created for Apple Card prevents Apple from knowing where a customer shopped, what was purchased, or how much they paid.
As expected, Apple partnered with Goldman Sachs and Mastercard to provide support of an issuing bank and global payments network. This makes Goldman Sachs a newcomer to consumer financial services.
“Simplicity, transparency and privacy are at the core of our consumer product development philosophy,” added Goldman Sachs chairman and CEO David M. Solomon. “We’re thrilled to partner with Apple on Apple Card, which helps customers take control of their financial lives.”
Mastercard will provide cardholders with the ability to make purchases around the globe.
“We are excited to be the global payments network for Apple Card, providing customers with fast and secure transactions around the world,” noted Mastercard president and CEO Ajay Banga.
A titanium Apple Card was designed for shopping at locations where Apple Pay is not accepted yet. The physical card does not have a card number, CVV security code, expiration date or signature on it. This makes the Apple Card more secure than other physical credit cards. This information is accessible in the Apple Wallet app. Purchases made with the titanium Apple Card receive 1% Daily Cash.
