Apple announces its very own credit card system that aims to push mobile banking to greater heights.
Jennifer Bailey, vice president for Apple Pay, made the announcement and presentation to the media on Monday during its press conference in California after launching several other new products and services.
Dubbed as Apple Card, the new service will allow iPhone users not only to pay through their mobile phones but use it as a credit card as well. Apple has partnered with financial services companies Goldman Sachs and Mastercard to offer the credit card service in international stores worldwide.
How Does Apple Card Work?
iPhone owners need to create their accounts and in a few minutes, they can begin using Apple Card. It can be found in the Wallet app, allowing consumers to view and track their spending. The app lists all the stores where users bought from, and displays when the next payment is due.
The new Apple feature will be available to owners of the company's later iPhone models, possibly those that support FaceID and TouchID. Payments can only be authorized using these security features. The presentation claims neither Apple nor Goldman Sachs would sell personal information to third-party vendors.
With the help of Mastercard, Apple has enabled Apple Pay to be widely accepted worldwide. Still, in locations where Apple Card is not accepted, the company will provide consumers with a titanium card etched with Apple's logo and the user's name on it. Bearing no numbers whatsoever, the physical card also contributes to Apple's objectives to keep everything more secure.
Perks And Benefits
According to the keynote, updating personal information for the Apple Card is simple: just message Apple and that's it. However, what makes the Apple Card stand taller than other mobile payment options are the various features that come with it.
One great feature that everyone would love is that the service does not require any fees. Even during instances when users get behind on their payments, Apple would not charge higher interest rates. According to Apple, those are the lowest rates in the industry. Talk about making a big splash in the financing industry.
As for the rewards system, Apple introduced Daily Cash, which automatically sends money back to users' accounts for every purchase they make. To simply put it, what Apple is saying here is that it is giving away free money for using its own service. Consumers will enjoy a $2 cash back every time they spend, although that rate increases to a $3 cash back if they make purchases from Apple.
Having the Apple Card is also like having one's own credit and loans adviser. The feature shows and suggests how much and how often should consumers pay for their purchases. Apple Card also has the unique objective of helping its users understand their spending habits, and start making smarter choices in spending.
When Will Apple Card Be Available?
Bailey said the Apple Card will officially launch in the United States this summer, which is between June and August.