Apple launches Apple Card in payments services expansion
Apple on Monday announced an extension of its Apple Pay service, launching an Apple-branded credit card that offers a streamlined application process, daily cash back, and enhanced security. The product was announced during Apple's services event on Monday and is slated to launch sometime this summer.
- See it now: Apple Card
Apple is offering Apple Card as both a digital service stored in Wallet and an actual physical card for use where Apple Pay isn't accepted. The physical card is meant to reflect Apple's signature minimalist style, with no visible card number, CVV security code, expiration date, or signature on the card.
Jennifer Bailey, VP of Apple Pay, said Apple Card will give people more insights into their finances, like for instance how much you've spent in a certain category, or when the next bill is due. It also uses machine learning and Apple Maps to transform the lists of transactions that are normally found on a credit card bill into recognizable locations.
In terms of security, Apple Card's unique card number will get stored in the iPhone's Secure Element security chip, with purchases authenticated through Touch ID or Face ID.
"We created a unique architecture for Apple Card where Apple doesn't know what you bought, where you bought it or how much you paid for it," said Bailey. What's more, Apple Card partner Goldman Sachs will not share or sell user data to third parties for marketing or advertising, Bailey said.
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On the cash back front, users will back two percent of the daily amount in Apple Cash. Customers will also get three percent Daily Cash on all purchases made directly with Apple, including from the Apple Stores, the App Store and for Apple services. Customers will get one percent Daily Cash for purchases made with the physical Apple Card. Apple said there are no fees associated with Apple Card, meaning no annual, late, international or over-the-limit fees.
Before announcing Apple Card, Apple CEO Tim Cook said Apple Pay is on track to reach 10 billion transactions this year. By the end 2019, Apple expects to have Apple Pay available in more than 40 countries.