Tech Giant Apple Enters the Credit Card Market

26th March 2019
Contributor:
Alex Ellwood
Alex Ellwood

Apple has announced that in Summer 2019 it will be releasing a new way for consumers to pay: the Apple Card.

The credit card, issued by Goldman Sachs and processed on the Mastercard payment rails, is pitching itself as a game changer in the credit card industry, but that remains to be seen. Consumers will store the credit card in their iPhone Apple Wallet, although a physical laser-etched titanium card is available for purchases at merchants that do not accept Apple Pay or for consumers who prefer a physical card. Apple Card is boasting no fees of any kind and will allow users to track their spending by category, pay their balance straight from the Wallet App, easily manage interest payments, and access cash back bonuses that will be available to redeem real time.

In a press release, Jennifer Bailey, Apple’s vice president of Apple Pay explained, “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.”

Apple seems to be hoping that low fraud risk will be a big draw for consumers. The Apple Card will have no numbers on the front or back (and no CVV) – a new card number will be automatically generated from the secure chip in a user’s iPhone each time the card is used. Users will be required to use 2 Factor Authentication, using either a fingerprint or facial ID to access the app and make a payment.

You Might Also Be Interested In These...

Blogs
05.27.2021
The 6 Biggest Takeaways from the Federal Reserve Regulation ii Report

The 6 biggest takeaways from the Federal Reserve Regulation ii Report – CMSPI Insights

Read More >
Blogs
05.20.2021
What Does the Fed Report Say About Fraud?

This article will explore the differences in performance between global card networks and U.S. domestic card networks in each of these environments.

Read More >
Resources
04.20.2021
What Is Debit Routing? A CMSPI Insights Infographic

CMSPI’s infographic on debit routing explains the uses and benefits of debit card routing to merchants and consumers.

Read More >
Blogs
04.08.2021
Excessive Online Credit Card Rejections During Pandemic Mean Frustration for Consumers, Missed Sales for Retailers

While online rejections help prevent fraud, CMSPI data indicates that one out of every five is a false positive – meaning good customers are wrongly turned.

Read More >
Read more industry news & insight