Apple made its foray into fintech with Apple Pay, a mobile payment and digital wallet service which came out in 2014 and enabled users to make payments at checkout offline and online.
Apple Pay was supported across several of its key devices and across many different countries across the world. According to Statista, the proximity mobile payment transaction value in the United States is 49.3bn USD and the number of Apple Pay users worldwide is 252m.
Credit Suisse estimated that the number of Apple users worldwide was 588 million in 2016 with 1.3 billion active devices worldwide in 2018.
Tim Cook stated during the event that Apple Pay will hit 10 billion transactions sometime this year. The company expects to expand its offering to more countries in 2019.
These numbers indicate that there’s growth potential for the Apple Pay initiative and the Apple Card just might be a catalyst.
The Apple Card
The Apple Card is a credit card fueled by Goldman Sachs and Mastercard.
Users access the Apple Card by enrolling into the program via their iPhone.
Once obtained, the Apple Card is utilized via the Wallet app. See a history of transactions, total debt, interest charges, and data on spending.
- Simple – The Apple Card is easily accessible and is device native.
- APR – Will vary from 13.24% to 24.24%.
- Cash Back – 1% for physical card swipes. 2% cash back per digital use, credited daily. 3% cash back for digital use for the purchase of Apple products and services. Cashback proceeds are sent to your Apple Cash or applied to the total debt.
- Privacy – Apple will collect no information on each transaction.
- Payback – Pay the debt via your bank or Apple Cash.
- Fee Free – Apple Card comes with a lack of fees. A recent survey states that more than 30% of respondents found that its zero fee policy made it compelling. Apple Card is one of the few cards that come without fees.
- Accepted Broadly – Use Apple Card wherever Mastercard is accepted.
- Physical Card – The opaque titanium Apple Card comes with no identifiable information everything is stored on your phone.
- Security – Varied card information per device. Accessible biometrically only through PIN or FID. 2FA is a must for sign up. Generate a new primary account number at the tap of a button (but don’t do this, it’s like getting a card, you’ll have to update your information with subscription-based merchants). Confirmation codes are required per use.
How Will Apple Earn Money?
- Interest – Interest on balances left over each month.
- Interchange Fees – Merchants will likely pay processing fees.
When is it available?
This summer for customers in the United States.