Apple Inc has officially announced the launching of its zero fee credit card known as the ‘Apple Card’. The starters will not have to wait for days in order to get the card. All you need to do is, sign up on your iPhone and in just a few minutes, you will be assigned your apple card and you can start using it right away.
The apple card can be used worldwide anywhere using apple pay; in apps, in stores, and on the web. The apple card will be available on all the Apple devices. The apple card always remains with the user as it is inside the user’s iPhone in the wallet app.
The wallet app will show everything the user needs to know about the apple card. Things like what the user has spent, how much the user has spent and when is the payment due. The credit card transactions in the traditional banking systems seem quite annoying as they are generally written in cryptic names that are pretty hard to decipher. With apple card, the company has used machine learning and apple maps to transform this mess into names and locations that the user recognizes.
The wallet app also automatically organizes and totals the purchases of the user so that the user can see how much he has spent and exactly where has he spent it with apple maps. The user can also keep track of his spending by categories like food and drinks, shopping, entertainment etc. Each category is represented by its own colors like orange for food and drink. The apple card also shows the user how his spending is trending (weekly or monthly), so that the user can decide if he needs to or wants to change his spending.
Whenever the user spends on anything such as grocery shopping, entertainment or coffee using apple card, the user gets ‘Daily Cash’ every day. So every day the user spends, ‘Daily Cash’ is added to the user’s apple cash card which is also in the wallet app and it is cash just like real cash, so the user can do anything with it such as spending it in stores, send it to friends, use in apps etc.
Every time the user pays with his iPhone or Apple watch, he gets 2% of the purchase amount (cash back) in daily cash. According to the company, the apple card shall be accepted all over the world.
A way to save more interest is to pay more often. Apple has added the flexibility to schedule more frequent payments. The user can schedule his payments daily, weekly or monthly. Also, the Apple card does not have any fees such as late fees, annual fees, international fees or over-limit fees.
Apple is also committed to providing one of the lowest interest rates in the industry. Even if you miss a payment, Apple will not charge a high penalty like most of the traditional banks do. The aim of the company is to make it easier for the user to pay his balance.
To create a credit card, a banking institution is surely needed and according to Apple, to create a credit card as innovative as the ‘Apple Card’, they needed a bank that was willing to do the things that had never been done in the industry before and thus the company chose Goldman Sachs to issue the Apple Card. As a newcomer to consumer financial services, Goldman Sachs was up for the challenge of doing something more bold and innovative.
Apple has also partnered with Mastercard for the Apple Card. Mastercard is already a partner on Apple pay from the start. With Mastercard’s global payment network, Apple Card will be easily acceptable all around the globe.
Apple is also committed to providing a new level of privacy and security. According to the company, security is totally integrated throughout the hardware and software. When the user gets his apple card, a unique per device card number is created and stored safely in the ‘secure element’ which is a special security chip which is used by Apple Pay.
Each payment includes a one-time dynamic security code which protects the card number from being used without the authorization of the user and every purchase it authenticated with touch id or face id.
Keeping privacy in mind, Apple has created a unique architecture for Apple Card where apple doesn’t know what hs the user bought, where has the user bought it from or how much has the user paid for it. So features such as spend tracking and categorization happen using on-device intelligence and not on apple servers.