Apple Card to disrupt mobile payments
(30 March 2019 – United States) Apple has announced the introduction of a new credit card that aims to have quicker applications, no fees, lower rates and better rewards at its ‘show time’ services event.
Apple Card has officially entered the world of credit cards by creating one that you operate mostly from your iPhone. Goldman Sachs has partnered with Apple to produce the card, with MasterCard providing payment processing. Apple's new credit card lets consumers pay for goods and services online and in stores. It builds on Apple Pay, a mobile payment system based on your existing credit card, which Apple has had in place since 2014.
Launching its own payment card, as opposed to partnering with a consumer’s bank card, is viewed as a bold move for Apple setting the group aside from other tech giants Google and Samsung, two companies that also have robust mobile payment systems. Customers receive a traditional physical card yet it is blank. All of the authorisation information is stored directly with the Apple Wallet app. Apple announced that it planned to use machine learning and its Maps app to label stores that you use and to track purchases across categories.
Apple CEO Tim Cook said that the card would be one of the biggest changes the credit card had seen in decades. “Apple is uniquely positioned to make the most significant change in the credit card experience in 50 years,” he said. The new credit card will give two per cent cash back rewards, which is applied directly to the account for purchases made through Apple Pay but only one per cent for purchases made using the physical card.
Vice President of Apple Pay Jennifer Bailey said that the card builds on the work of Apple Pay and uses the power of people’s mobile devices. “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance,” she said. Ms Bailey said that privacy was a big issue and all tracking information would be stored on users’ iPhones, not on Apple’s servers. “Apple doesn’t know what you bought, where you bought it, and how much you paid for it,” she said.
Chairman and CEO of Goldman Sachs, David Solomon, said he was thrilled to partner with Apple on this card. “Simplicity, transparency and privacy are at the core of our consumer product development philosophy,” said Mr Solomon. “We’re thrilled to partner with Apple on Apple Card, which helps customers take control of their financial lives.”
MasterCard President and CEO Ajay Banga said the company was excited to bring global payments to Apple. “We are excited to be the global payments network for Apple Card, providing customers with fast and secure transactions around the world,” he said.
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