Months after the new fintech service was first announced, the Apple Card is set to be rolled in the coming weeks.
This morning (31 July), many are reflecting on Apple’s latest earnings report, which brought the news that the iPhone is no longer the primary driver of Apple’s sales.
One of the main takeaways is that the tech giant is putting more resources into services such as Apple Music, iCloud and the App Store, which makes CEO Tim Cook’s latest update about the Apple Card even more timely.
“Thousands of Apple employees are using the Apple Card every day in a beta test and we will begin to roll out the Apple Card in August,” he said.
The initial announcement about the Apple Card was made in March 2019, with plans to first launch the credit card in the US market. From the release date, users will be able to sign up on their iPhone and receive a virtual card to start using right away. There is also a physical, titanium card that accompanies the digital service.
Like many existing fintech services, the Apple Card will allow users to digitally track their spending over time.
However, there are some aspects of the new service that set it apart from existing offerings in the fintech market. For instance, the card doesn’t use a traditional 16-digit card number. Instead, it will generate those numbers randomly during each transaction to keep purchases secure.
The Apple Card was co-developed with Mastercard and Goldman Sachs. Apple said that Goldman Sachs will not have the ability to track user spending or see where Apple Card customers are shopping.
Users will not have to pay any fees, set a PIN, or worry about CVV numbers and expiration dates. Users will receive cashback at a rate of 2pc for general daily purchases, and 3pc for purchases directly from Apple online or in-store.
The Apple Card will also be compatible with the Apple Watch, which may be due to the success of wearables in the company’s last quarter.
Apple has yet to confirm the exact release date of the product, or give details on when the service will be extended to users outside the US.