When you hear Apple, you think tech. You think of the iPhones, iPads and Macbooks. That may be set to change in the future. This past Monday, Apple announced a move that suggest their intention to take a bite out of the credit card industry with the introduction of the Apple Card, partnering with Goldman Sachs and Mastercard. Interesting and intriguing isn’t it? This move by the tech giants probably has you brimming with questions, so we at Salt are here to clarify things as much as possible.
What exactly is the “Apple Card”?
Simply saying, it’s a credit card; with a modern touch. It’s set to be incorporated with Apple Pay and improve the traditional credit card experience for users. It’s not just going to be a credit card living on your iPhone. There’s also a physical credit card for places where Apple Pay isn’t available.
Where will users be able to use the Apple Card?
Pretty much at every merchant online and in physical stores that accept Mastercard. There’s even an incentive for users for every dollar they spend. Here’s how that’s structured. With a program called Daily Cash, every user gets a cash back of:
- 1% when they use the titanium Apple Card (physical card)
- 2% when they use the Apple Card (digital) on any purchase
- 3% when they use the Apple Card (digital) on purchases they make directly from Apple
Sounds great, but the interest rates must be off the roof, right?
No, not really. It will range from 13.24 to 24.24 percent depending on a customer’s credit worthiness. There are no fees associated with Apple Card: no annual, late, international or over-the-limit fees as well. Considering it’s Apple and the fact that the card is absolutely stunning, there’s nothing to complain is there?
Let’s talk about security then shall we?
Unlike other credit cards, the Apple Card has a distinct feature that sets it apart from the rest. The only detail on the beautiful platinum card will be your name. No card number, no CVV, no expiration date and no signature. All the details will be on your phone meaning, no one’s really going to threaten its security by stealing a glance at it. Or even stealing the card itself.
What else is unique about the Apple Card?
Amongst other features, Apple have developed an algorithm to keep track of the expenses incurred with the Apple Card. Users then can get a clear analysis of their spending habits and tendencies on their iPhones and adjust according to their wish.
Is it in Sri Lanka yet?
Not yet, but Apple is said to be eyeing up partnerships with banks around the world. For the moment though, it is only in operation in the US although we have no doubt it’ll expand very soon.
What’s our take on this?
We think it’s an ambitious move by Apple and of course they have every right to be. It seems to be a move they have been planning to make for a while which explains how well thought out it is. Will it be an overwhelming success like their tech products? Only time will tell.