(ThyBlackMan.com) By announcing the Apple Card (a new credit card), Apple has proved that it is ready to change things up a bit. Apple Card gives us a glimpse of the future by showing how our credit cards will look like. Most importantly, now we know that credit cards can be a lot more secure and people can use credit without having to worry about late fees and penalty rates.
Apple’s partnership with Goldman Sachs and Mastercard has paved the way for the company to be a big player in the fintech space. Apple knows how to improve existing products and here’s how it is on the way to making Apple Card one of the top-rated credit cards in the country.
- More focus on security and privacy
Users can activate their Apple Card with just a tap on their iPhone. An activation popup will appear on the user’s iPhone from where the user can activate the physical card. Apple Card will be a game changer because it takes security and privacy at the next level. The card doesn’t have the permanent card number on display and you will only see 4 digits of the card number.
Apple is changing the way we use credit cards. Many people are already familiar with virtual credit cards. Apple Card also uses virtual card numbers and verification codes for online transactions. Instead of using a permanent card number, Apple will let you use these virtual numbers. The best thing is you can generate a new card number which makes it more secure in certain situations.
One of the biggest security features of Apple Card is that it requires a confirmation code every time you make a purchase. This makes unauthorized access to your card almost impossible. All the purchases from the virtual card require biometric authentication. When dealing with a fintech brand, people expect confidentiality and safety of their personal data. According to Goldman Sachs, users’ data will not be shared for advertising or marketing purposes.
- Apple Card boasts ease of use
Apple Card users will not need a signature on their credit card and this applies to both physical and digital versions of the card. Using your Apple credit card at a brick-mortar store or online will be easy because you won’t have to show your signature on the card. If you qualify, Apple will give you a beautifully designed titanium Apple Card which you can replace at zero cost. Apple said that users won’t have to pay for card replacement.
Interestingly, Apple won’t charge you a fixed rate on transactions made in other countries. Charges on any such transactions will be subject to Mastercard’s policy as the rate of currency exchange will be determined by the exchange network in real time. Apple Card will be available in both physical and virtual form, so if in future a user wants to switch to an Android phone, he will be able to use the service with the physical card.
- Apple Card offers cashback
More than 75% of credit card users want a payment rewards system tied to their cards. According to a report, over 80% of people prefer getting cash back over points. Apple does exactly the same. To make Apple Card rewards simple and most beneficial for consumers, Apple’s credit card gives you cash back on transactions. The amount of cashback will vary depending on which card you choose to pay with – physical or virtual.
Converting points into something useful depends on the transactions you’re willing to make, but with cashback, you can use the money in any way you want. The virtual card will give you 2% cash back and the physical card will offer 1% cash back on your purchases. For transactions tied to Apple Pay, users will get 3% cash back. The cashback reward will be added to your Apple Cash balance and it can also be added to your monthly credit balance if you want.
- No penalties or late fees
Missing a payment deadline is not good for your credit score and it also increases the chances of high penalty charges. Apple Card is different as it doesn’t put any late fees or penalty charges if you miss a payment. There are literally no charges on late payments, but it will certainly have a negative impact on your credit score. The good thing is even if you miss a payment deadline, neither Apple nor Goldman Sachs will increase your interest rate. This is very rare in credit card space.
HSBC’s Nigel Fletcher is optimistic about this move. According to Fletcher, this move may increase the outstanding balances by more than $50 billion which is high enough for a credit card provider and could make Apple one of the country’s largest credit card providers.
- Low interest rate
One of the most important things credit card users check is the interest rate they are going to pay. Apple will offer credit on low interest rates. “Our goal with Apple Card is to provide interest rates that are among the lowest in the industry,” said Apple. Apple has chosen a model that puts consumers at the lower end of an interest rate tier. It means that the qualified users can still pay low interest rates by being at the bottom of the tier.
Nobody knows for sure where the Apple Card will take the company. Maybe someday we will see Apple banks or something similar. But overall, Apple’s credit card is a user-friendly product and it provides some real, attractive benefits. The card will be available in the U.S. from this summer.
Staff Writer; Corey Shaw
Have any Tech Tips? News? Hit up our Tech Guru at; CoreyS@ThyBlackMan.com
