Quicktake: how Apple Card is different from other banks’ credit cards
In the beginning, it will be available to customers in the US this summer
Entering into the world of credit cards, tech giant Apple unveiled Apple Card in California on Monday.
Free-of-charge and promising instant activation, Apple Card also offers cash-backs to customers on each transaction. To start with it will be available to customers in the US this summer.
The National takes a look at what this technology is all about.
What is Apple Card?
Apple Card will be built into the wallet app on the iPhone, offering customers a similar experience to Apple Pay – a mobile payment service that was launched in 2014. Unlike other credit cards, for every purchase, customers will get cash back.
“Apple Card builds on the tremendous success of Apple Pay and delivers new experiences only possible with the power of iPhone,” said Jennifer Bailey, the company’s vice president of Apple Pay.
Who are the partners?
The company is partnering with American investment bank Goldman Sachs to support it in issuing Apple Card. This is the first time Goldman will have issued consumer credit cards. Apple has also joined hands with financial services giant Mastercard to provide a global payments network and handle payment processing.
Annette Zimmermann, vice president and analyst at Gartner, told The National it was impressive that Apple managed to line-up partnerships with big names before launching Apple Card.
“It exemplifies very interesting business dynamics. Mastercard is obviously one of the competitors in this segment, so there must be some kind of strong value exchange between the two companies. Using Mastercard’s global network to let people pay is remarkable,” Ms Zimmermann said.
Apple Card will be a new revenue driver as the company ramps up its services offerings, she added.
How do you sign up for Apple Card?
Customers can sign up for Apple Card in the wallet app on their iPhone and start using it instantly in physical and online stores globally. It is "smart" - using artificial intelligence and Apple Maps to show transactions with merchant names and locations. Transactions are organised by colour-coded categories such as food, shopping and entertainment and it also provides weekly and monthly expenditure reviews. This card comes with no annual fees, late fees or overseas charges and zero penalties for missing payments. Apple has promised to never share or sell customers’ data to third parties for marketing and advertising purposes.
Is there a physical card as well?
To cover those locations where online transactions are not accepted, customers can use a physical titanium Apple Card for shopping. It has no card number, CVV code or expiry date and neither does it need a signature on the card.
Updated: March 26, 2019 07:34 PM