Tech Giant Apple Enters the Credit Card Market26th March 2019
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.