Your introduction to Apple was probably through its computers, then they brought the cell phones and tablets. And now they have got you credit cards!
Apple recently announced its new credit card aptly called the Apple card, especially designed for the iPhone and will be made available in the US in the summer of 2019. With iPhone sales weakening, Apple was looking for ways to grow its business, and this esteem credit card is a clear play. With this move, the tech giant seems to be reinventing the wheel, but by sprucing up old-style products.
Very few know that Apple’s first credit card dates back to 1986. According to a report by the Cult of Mac, first one was not titanium but simple plastic and came with a small logo in rainbow colors on the top left corner of the card along with the card number and card owner name under it. The tech giant reportedly issued a number of credit cards in the 1980s and the 1990s. However, they were discontinued by the company later.
According to Apple’s CEO Tim Cook, Apple Pay will process 10 billion transactions and will be available in more than 40 countries. Vice President of Apple Pay, Jennifer Bailey has also said that “Apple Card builds on the incredible success of Apple Pay and delivers new experiences only possible with the power of iPhone”.
First and foremost feature, Apple Card is not going to support multiple users. People having a single account with two shared credit cards at the present will not be able to benefit the same thing with Apple Card.
The card offers a 2% ‘daily cash’ cash-back reward program for every procurement done using Apple Pay, 3% for any purchase from Apple and 1% when using the physical card elsewhere. As the rewards grow, they can be paid via Apple Pay cash inside Apple Wallet.
It does not include any kind of late fees, advance cash, overdraft, international, or annual credit card fees, except for valid interest charges when carrying a balance and any exchange fee that is normally charged to the retailer.
On the purchase of something, you will get an instant notification. You will also be notified of any unusual activity.
Apple will partner with Goldman Sachs and Mastercard to provide the global payments network for the Apple Card.
Its most powerful feature is privacy. When it comes to security, the card owner will get a different credit card number for each of your devices that is stored securely and you can access the PIN code using Face ID or concerned person’s fingerprint. CVV is the last line of defense when someone steals your card but with Apple’s feature of rotating the security code, it will become difficult for an attacker to use the card without your consent.
The credit card is not just limited to a virtual card. Card owners will get a physical titanium card with an Apple logo and laser-etched name. There is no card number, CVV code, expiration date or signature mentioned on the card, if needed, the information is available in the Apple Wallet App.
Apple is using machine learning and Apple Maps to ensure that all your Apple Card transactions are clearly labeled. If you open up a credit card statement and see a puzzling arrangement of trimmed letters and numbers instead of a full merchant name, then that is the problem Apple is resolving.
Its support will be handled through the messaging application, with a 24/7 support team. All you need to do is type a text to interact with support staff.
With the latest credit card launch, Apple has joined the ranks of tech companies such as Amazon and Uber, having their own credit cards. Its reward system lags behind because the rivals are offering sign-up bonuses while Apple is not. Amazon offers 5 percent cash back on Amazon and Uber offers 4 percent on all dining as well as $100 back when you spend $500 in the first three months.
Apple’s first credit card will debut this summer in the US and the speculations for the same have begun:
Tim Cook says Apple Card is a game changer.
Experts possess a different opinion
JPMorgan Chase and Citi companies have trapped customers with beneficial sign-on bonuses and rewards for spending on travel and dining in recent years. Apple's offerings are not amusing: 3% cash back on Apple purchases, 1% on using the physical card, and 2% on using Apple Pay.
Apple's assessment to stay out of the reward programs could be a nifty move, as one-upmanship has proved costly for others, said Chris Kuiper-an analyst at CFRA Research who shields credit card companies. But rewards are a customary draw, and the tech-giant’s cash back benefits are "middle of the road”.
This not so average card sports quite a few new and selected features that you will not find elsewhere. But it’s only beneficial for Apple users with good credit who live near merchants that accept Apple Pay. For people who do not fit the specific criteria, there are a number of issues with the card that makes it a little less compelling.
There are so many credit cards that are accepted at vendors and provide good perks and rewards. Like other credit cards, you should do thorough research and side-by-side comparisons before signing up for the Apple Card.