During its keynote event, Apple presented a physical credit card that the Group distributes in cooperation with Goldman Sachs and Mastercard. The so-called ‘Apple Card’ is characterized above all by its strong integration with the iPhone and the Wallet app. Users can view a detailed analysis of their expenses and outstanding amounts on their smartphone to keep track of their financial situation.
Transactions with Cash Back
Apple Card users receive a cash back of between one and three percent for all transactions, which is credited to the virtual Apple Pay Cash credit card integrated in the Wallet app.
Thanks to its integration with the iPhone, the Apple Card is expected to meet a higher security standard than other physical credit cards. Apple does without a printed credit card number and a CVV code. If the data is required, credit card users can access it via the Wallet App. Otherwise the Apple Card uses the security functions already known from Apple Pay.
Despite the extensive integration into Apple’s infrastructure, the company says it does not receive any information about users’ transactions. Goldman Sachs and Mastercard must have access to this data for technical reasons, but may not use it for personalized advertising.
Laut Apple low charges
According to Jennifer Bailay, Apple Manager, the fees for the Apple Card will be low compared to the competition. There is no annual fee and no costs for use abroad. According to Apple, interest rates will also be lower than for other US credit cards.
As you can read in the conditions of the credit card, this is a typical exaggeration. Depending on the creditworthiness of the user, an annual interest rate of up to 24.24 percent is charged. Even customers with excellent creditworthiness pay a minimum interest rate of 13.24 percent, so we cannot speak of low interest rates. John Gruber, a blogger known in the USA, writes in addition that credit cards of the established competition often have substantially low interest rates.
On the positive side, Apple is at least not trying to hide the interest rates. Inside the Wallet app appear as clearly visible. Customers who pay their outstanding amounts immediately do not have to pay any interest at all, as is usual with other credit cards, and therefore use the Apple Card free of charge due to the lack of other fees.
The Apple Card will be released in the summer of 2019, initially in the USA. Richard Gnodde of Goldman Sachs told the US television channel CNBC that “international possibilities will definitely be considered over time”. The Apple Card will probably appear in Germany with a delay of a few years, just like Apple Pay did before.