Apple gets into credit cards

In the world of post-iPhone revenue, Apple has to think about how it can keep its revenue stream going—both from new and old customers. How do you make them stay? One new approach they’re doing is by launching a new branded credit card, aptly called Apple Card. It’s both a digital card that lives in your Apple Pay app and a physical titanium and laser-etched card, which can be used in stores where Apple Pay isn’t available. The tech company is backed by Mastercard and Goldman Sachs to bring this card to life. Apple is saying it’s a simpler credit card without fees and rewards for its customers who use Apple Pay. But of course, there’s more to that we’re sure we’ll hear more about in the coming months. And yes, while there are no penalties for missed payments, you will accumulate interest on top of your existing balance.

While Apple believes users will opt for the digital version of Apple Card, the physical one is unique in the sense that there are no other markings outside of the user’s name. Apple’s reasoning is if the card gets stolen, there is no way for the thief to use it. The card number is unique for each device and it’s stored in the iPhone security chip, Security Element. You’ll get a dynamic security code every time you make a purchase and you will need to authenticate this biometrically. Apple promises that they don’t track what you’ve bought with that information stored in the device and not on the cloud. The Apple Card is coming to the US first. There isn’t any word yet if it’ll be crossing the border. But we’re assuming Apple wants to see how it pans out at home first.

Source: The Verge + CNBC + CNET