Almost a year ago, Apple introduced its first financial product – Apple Card. The project was implemented in partnership with Goldman Sachs and MasterCard.

To get Apple Card, users need to register in the Apple Wallet mobile app. Payments by Apple Card are available wherever Apple Pay works. In addition to a virtual card, each client can get a titanium card with an attractive and original design.

WHAT’S THE BIG DEAL?

Apple’s titanium card does not have a number or CVC code, but if necessary, they can be generated in a mobile app. This data is dynamic, providing an additional level of security.

Apple Card has three different numbers:

    • Physical card number. Only the last four digits are available to the cardholder to make a refund or identify a payment made by the card.
    • Tokenised card number for payment via Apple Pay, and here also the user can see only the last 4 digits.
    • Virtual number – a card number for online purchases, which, together with the CVC code, is dynamically generated upon request in the mobile app.

Apple Card doesn’t have a PIN code or NFC. There is only a chip, a magnetic strip and the cardholder’s data on the card. According to Apple, contactless payment is carried out through the iPhone.

WHAT ARE THE BENEFITS FOR USERS?

Another interesting feature is the daily cashback system – Daily Cash. When paying through Apple Pay, 2% is returned to the account, for purchases in Apple stores – 3%, when using a titanium card – 1% of the cost of the goods. At the same time, users are exempted from any service charges and commissions.

Cardholders may choose a loan payment that best meets their needs. It can be both zero or full repayment of the debt. The inbuilt calculator displays the amount of accrued interest depending on the repayment terms.

Apple Card uses Apple Maps to determine where users make a purchase. Apple only needs the name of the store and its location on the map.

WHAT DOES APPLE GAIN?

The USA – the worldwide leader in the number of iPhone users – was the first country where the new credit card was implemented. This was in August 2019, and it is now gaining popularity. Outside the country, Apple Card is not yet available, and it is not yet known when it will become available.

Apple products primarily operate within the Apple ecosystem. IPhone users who decide to switch to smartphones of other brands experience problems due to digital data transfers or losses – purchased movies, music and data in the cloud. In addition, the popular Apple Watch doesn’t work with any smartphones other than the iPhone. With the advent of Apple Card, it will become even more difficult for users to change the brand of their phone, since the Apple credit card can only be integrated into the iPhone. This means that cardholders will have some financial dependence on Apple devices.

GLOBAL RECOGNITION

Apple Card in the USA is an important step for the development of the country’s market. Outside the USA, the distribution of the new credit card will depend on the iPhone and popularity of various payment methods, which vary from country to country.

Digital payments are highly competitive and some banks such as the Russian bank Tinkoff have also begun to offer their customers metal cards without a number. And last autumn Google announced its financial project Cache, developed in partnership with Citigroup and the Stanford Federal Credit Union. So, in 2020, it is planned to launch a financial service that will enable users to open payment accounts and use them from the Google Pay app.

APPLE CARD IS A FULLY FLEDGED BANK PRODUCT THAT IS A FRESH START ON THE HIGHLY CROWDED CREDIT CARD MARKET