Apple has launched it own credit card called Apple Card. The card has been created in collaboration with Goldman Sachs and aims to change how credit cards work. It focuses on privacy, security and transparency and helps users keep track of their spending habits and payments. The card has no hidden fees, encourages users to pay less interest and has a Daily Cash rewards program. To top it all off, an Apple designed titanium credit card will also be available which will work where your Apple device wont.
There was not a lot of hype on this aspect of Apple’s event. While we were all looking forward to the entertainment focused announcements revolving around Apple TV, the news about an Apple Card in partnership with Goldman Sachs was reported by WSJ. They were right on the money.
Apple Card, launching in Summer 2019 in United States, will be a primarily digital card which will exist within the iPhone Wallet app. Just like with all Apple products, the card experience is focused on simplicity, design, security and privacy. Using their experience with Apple Pay, the company has taken their learnings and implemented features and policies that seem extremely user friendly.
Ease of use and privacy are covered thanks to Face ID, Touch ID and on-device data storage. The Wallet app will show a special user interface that shows the total balance, available credit, payment due date and weekly activity to help users track their spendings.
Each transaction with the Apple Card will have detailed information and data, including history and even location of the place where the payment was made.
Total spending will be shown as weekly or monthly graphs as well as by different categories or merchants. The different colors in the chart will help users understand the category where they are spending the most on. The company says that they want to help users spend money wisely.
For credit card payments, Apple will allow users to setup weekly or biweekly payments and even send reminders for due dates.
For places that do not accept Apple Pay, users can get a titanium, laser‑etched, Apple‑designed credit card. It will have no number, expiry date or CCV.
Apple’s Daily Cash Rewards program will instantly reward users for their spending. Daily Cash would provide cash backs of 2% on regular transactions and 3% on purchases from Apple. The Daily Cash would have no limits so users would get cash backs on all spendings. Daily Cash would be rewarded everyday to the user, instead of the usual 30 day wait or minimum points requirements by credit cards from other banks.
Security, privacy and support
In terms of security, no user data will be shared or sold by Apple or Goldman Sachs with anyone for marketing or advertisements. Even Apple will not know details of a user’s purchase. All card and transaction data will be encrypted on-device and not stored in the cloud.
Apple will be providing customer support via iMessage so users can text to get instant help.
The company claims that they will have the lowest interest rate in the industry. They also announced that there will be no hidden fees whatsoever. As per the footnotes on Apple’s website, if there are late or missed payments, they will result in additional interest on the customer’s balance.
Some new details have been shared by TechCrunch:
- Physical Apple Card will be activated by tapping it on the iPhone. However, it will not be used for contactless payments at terminals. You’ll have to use your iPhone for that.
- Physical Apple Card will not require any signatures to work.
- The titanium card will be free. If you lose one, the replacement will also be free.
- Apple Card can not be shared between different family members. No card sharing or multiple users.
- Apple Pay can generate virtual card numbers for online non-Apple Pay transactions.
- Here’s the Apple Card animation as found in iOS:
- Apple Card balance will be payable via Apple Cash, Cashback or via ACH from a bank account.
- Exchange rate for foreign transactions will be determined by Mastercard and not based on a fixed rate or foreign currency.
- There no late fees and no penalty rates. This means that if you fail to pay on time, the interest rate on your balance will not go up.
- Interest rates are between 13-24%. Users will be placed on the lower end of the tier that they are assigned, based on their credit score.