They plan to revolutionize the world
by Neil Khilwani
Staff Tech Junkie
With iPhone sales remaining stagnant over the past few years, Apple has been pushed to tap into other markets to increase profits. On Monday March 25, 2019, Apple announced its plans to do exactly that with a video streaming service. They also intend on entering the world of media with its own news service, and change the world of gaming with Apple Arcade. At the end of these announcements, Apple had another surprise: the Apple Card, which is Apple’s take on the credit card that according to them, “Is a new kind of Card that completely rethinks the Credit Card.” The Apple Card, which is set to launch this summer, will be available for consumers to use digitally on iPhone through Apple Pay or physically with a titanium card featuring a powerful microchip for places where Apple Pay is not accepted.
In need of a bank to support this card, Apple has partnered with Goldman Sachs to create the Apple Card, marking the first time Goldman Sachs has ever issued a consumer credit card. When made available, users can simply sign up for the credit card through iPhone’s built-in Wallet app with Apple Pay.
In terms of security, the aesthetically pleasing titanium card will show no numbers, not even a CVV. There is a credit card number, but it can be changed at any time through the app. In the case of loss, or separation as the credit card people like to call it, the card can be cancelled through the iPhone and Apple will ship a new one your way. Purchases done through the phone will be secured with Face ID or Touch ID, meaning that even if someone stole your iPhone, they could not use it for purchases. Anytime a purchase is conducted, Apple will immediately notify users. Any suspicious transactions can simply be reported through Wallet and Apple will take care of the rest. As a bonus, there is a support texting service that answers questions pertaining to fraudulent spending and any other questions relating to Apple Card. For those concerned about giving up data to Apple, the company has assured that they will not collect customer data related to purchases.
On the app, transactions can be tracked to the exact location they were made. Apple even takes the effort to categorize purchases such as those for food and shopping. Apple Card even offers a daily, weekly, and monthly summary of spending habits.
Unlike other credit cards, Apple Card prides itself on its lack of fees. There are no annual fees, late fees (though interest will increase on late payments), or over the limit fees. When it comes to interest rates, Apple Card offers the normative APR from 13% – 24% depending on credit worthiness. Interestingly enough, Apple Card offers no sign-up bonus, which is unusual for credit card companies today.
Perhaps the most notable aspect of Apple Card though is the incentivized daily cash rewards. For example, when buying directly from Apple, users will receive 3 percent cash back, 2 percent back when purchasing through Apple Pay, and 1 percent back when the physical card is utilized. To add to all of this, there is no cap on the amount of cash back. All you need to do is make sure you do not exceed your spending limit.
Overall, Apple Card is a power play by Apple that not only encourages users to make digital payments through their phones but is also a tactic to secure iPhone users to stay with Apple while simultaneously generate new profits for the company.