A new type of credit card. Created by Apple , not by the Bank ”- this is Apple’s
first physical map . It took quite a while after the announcement of the new
product and it’s time to figure out what kind of product it is, how it differs from
a million other credit cards and who will benefit from it.
Apple loves everything revolutionary, but sometimes the revolution is to serve
a well-known dish with a new sauce. It seems, what can surprise another
credit card if there are already more such cards in circulation than there are
people on the planet? Apple decided to finalize the familiar card settlement
system and implement three of its main principles in it: simplicity,
transparency and functionality. So there was an Apple Card credit card. It can
be registered through the Pay application on the iPhone and used in any
terminal that supports contactless payments via MasterCard. The
announcement of the card took place on March 25, 2019 at a special event of
Apple, but it will be officially possible to use it only in the summer.
What does the Apple Card look like ?
The appearance of the Apple Card is difficult to judge objectively: only a few
managed to hold it in their hands, and these were test samples. But what
Apple promises looks attractive. The card body will be made of solid titanium.
The name and surname of the owner will be engraved on its front side (that is,
it will be personalized), the company logo on the top left and the chip on the
right in the center. By default, on bank cards, the chip contacts are made in the
form of a symbol reminiscent of ancient Egyptian writing, but Apple went
further and changed its concept. Now on the chip are six contact areas in the
form of ellipses.
You will not see any other inscriptions, and this is logical: Apple loves
minimalism when it comes to design of anything. On the reverse side, the
usual validity period of the card is not indicated, the CVV code and there is no
owner’s signature. All confidential information is stored only in the Apple
Wallet application to which the card is attached.
Interesting fact: Apple uses the San Francisco font to spell the
owner’s name. The same font can be seen on the keyboard
designed for its mobile devices.
What are the benefits of Apple Card?
“Firstly, it’s beautiful.”. But do not forget that we are faced with not just
another mobile gadget with an “apple” instead of a logo, but a full-fledged
banking product. We look at what benefits the owners of this unusual credit
Apple promises customers a new user experience – they will receive more
profitable offers and will be able to make part of the payments without
commission. But the most interesting “trick” will be the Daily Cash cashback –
a refund back to the card. The size of the cashback will vary depending on
how you use the card. If this is a purchase through Apple Wallet, 2% will be
returned. If you make purchases in Apple services (Apple News Plus, iCloud
storage, Apple Music, games and App Store applications), then you get 3%
back. And if you use a physical card, expect only 1%. There are no restrictions
on the amount of funds returned – it can be one dollar or one thousand.
The Apple Card can be tied to Apple Pay or used as a regular credit card:
withdraw money from an ATM or pay at the checkout counter. You may not
even use a physical card at all – in a virtual version, it is completely viable.
There is no billing information on the titanium plate of the card, but that’s not
all. No one at Apple will know what and where you are buying, how much you
pay for it, and how often you make such purchases. Accordingly, this
information cannot be transferred to third parties and / or used for advertising
Each card will have a unique number, which is stored on a special security
chip. For authorization when making payments, familiar technologies like
Face ID or Touch ID will be used. You will also need to enter a one-time unique
Apple promises that nothing unexpected will happen to the card, you will not
be fined for late payments, the service itself is completely free, unlike some
other credit products popular in the USA. Also, Apple promises not to connect
Directly from the application with an attached card, you can track purchases,
check balances and perform many other operations, like in an online bank. For
convenience, purchases will be categorized and marked with specific colors.
It is so easy to estimate how much is spent in the categories of “food and
drinks”, “purchases”, “cafes and restaurants”, etc. A summary can be obtained
in a week or a month to choose from. If you forgot where you made the
purchase, no problem: click on the total amount and you will see the store and
its name on the map.
Only iPhone owners can register an Apple Card and only through a
smartphone application. Registration through the browser is not
Interesting about Apple Card
Apple has no equal in doing extraordinary things that “catch”. This time, the
company claims that it will use machine learning in conjunction with geodata
from Apple Maps to mark in the app stores where the Apple Card user is
shopping. However, this information will not be stored on the servers of the
American company, but locally – on the user’s device.
Since a credit card, there are several prerequisites in order to receive it. At a
minimum, this is good credit history. USAA Routing Number The better it is,
the lower the interest rate on loan repayments will be. The most “problematic”
users will be forced to repay them at a maximum rate of 24%.
Thanks to this new product, Apple has joined the ranks of high-tech
companies such as Amazon and Uber, which even earlier launched their own
credit cards. The difference is that Apple does not plan to reward new users
with bonuses when registering.
A lost card can be frozen in the Wallet mobile app. You can also order a new
one there, and until its release and receipt continue to use the card in a virtual
What experts say
Goldman Sachs, which will serve Apple Card banking transactions, has doubts
about the attractiveness of cashback and believes that Apple should have
offered more attractive money-back conditions. For example, among
competitors – Amazon and Uber – such payments average 4–5%. And Rivka
Gevirts Little, director of research on global payment strategies at IDC, argues
that “Apple could implement innovative payment methods for its customers,”
and hints that the company would not hurt to issue a card with a zero-interest
rate on loan payments, to accurately impress users.
Sarah Silbert, the spokesman for The Points Guy (a portal that publishes
travel, bonuses, miles, and credit card stories), emphasizes that the Apple
Card stands out for its ease of registration and instant access. Plus, the
titanium design will attract users who are used to surround themselves with
premium things and accessories.
Most experts agree that the Apple Card will be of interest to users who often
make purchases in the Apple ecosystem, but are unlikely to register a card for
regular payments. And in order to save money, you will have to repay loans on
time and not wait until they accrue interest. In other words, maintain a positive
balance on the balance sheet as of the last day of the month. In order not to
miss the payment deadline, you can set up reminders – in the Apple Card this
function is implemented by default.
Where can I use the Apple Card
American banks will be the first to work with the Apple Card. Goldman Sachs
became the main partner of Apple in the USA, and MasterCard is used as a
payment system. Partnerships seem to be spreading to other countries, but
when this happens is not known. Apple plans to provide support for cards
around the world. It seems that everything will develop according to the
scenario of the Apple Pay mobile electronic payment system, which was
announced in September 2014, became available in the United States in a
month. Today this system is supported in 30+ countries of the world, new
states are connected to it every 2-3 months.
The first Apple Card users to become Goldman Sachs employees. Already,
they can leave a request to receive it. The rest will have to wait for the release
of the first batch, which will be freely available. Are you ready to wait for the
new titanium Apple Card?