Apple Announces Its Own Credit Card: the Apple Card

Daniel Fowler
March 25, 2019

The credit card had relatively little advance publicity but could have a big impact on online banking. The company does note that it is offering two percent cash back on purchases made through Apple Pay via the Apple Card, and purchases from Apple will get three percent back.

The new card will Apple's Wallet app to provide highly detailed information about the users' spending via the card.

It also offers Daily Cash rewards as part of its reward program, which gives back a percentage of every purchase as cash on customers' Apple Cash card each day.

Built into Apple Wallet and based on Apple Pay, the service allows users to keep close track of their spending, and does not have any transaction, late or worldwide fees, with Apple also aiming for the lowest interest rate.

In fact, the integration is so nicely done that you can simply message Apple to manage your Apple Card.

The Apple Card, on iPhone or in a physical titanium wallet card, aspires to change the way people pay with credit.

By design, Apple Card helps customers understand and track their spending.

Apple is launching a virtual credit card

To entice users to use the Apple Card, Apple will also "return" users daily cash through the Apple Card. This comes after a previous article in February which reported that both Apple and investment bank Goldman Sachs had been planning to launch a joint credit card.

Apple knows that for customers to fully embrace its payment service, it needs to be universally accepted. Requesting an Apple Card will be easy as you'll be able to do it straight from your iPhone.

"Apple Card uses machine learning and Apple Maps to clearly label transactions with merchant names and locations". Apple also announced the yet-to-be-disclosed interest rate will be among the lowest in the industry.

Revenue from its "services" segment - which includes the App Store, iCloud and content businesses such as Apple Music - grew 24 percent to $37.1 billion in fiscal 2018.

The card could get people to switch credit cards because of unique rewards and retooled some of the more daunting features of credit cards, like the convoluted monthly statement.

As for security it uses the same systems as Apple Pay.

"Every purchase is secure because it is authorised with Face ID or Touch ID, and a one-time unique dynamic security code", said Apple. The physical card is meant to reflect Apple's signature minimalist style, with no visible card number, CVV security code, expiration date, or signature on the card. Essentially, it's a new version of the existing Apple TV app that compiles existing streaming services into one place, combined with a subscription service that features original content.

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