Apple is coming out with a credit card made to change the way we all think about credit cards and spending. Available this summer, iPhone users are already gearing up for the new innovative way to use credit.
With unique features and low costs, is this actually revolutionary? Let’s look more into it.
Virtual Credit Card
It’s important to note that this credit card is only available for those who have an iPhone. This card is used through the users Wallet app and is used through Apple Pay.
If certain retailers don’t take Apple Pay, don’t worry. You’ll also receive a titanium version to put in your wallet. The neat thing about this is the only thing on the card is your name. So there is no threat to someone stealing the numbers on your card.
Users will receive 3% cash back on any purchases of Apple products made with the card and 2% cash back on all other purchases. If you use the titanium card, you’ll only receive 1% cash back.
You’ll get the rewards daily, rather than having to wait until you pay your bill to see them posted to your statement. You can put your “Daily Cash” money toward your Apple Card balance or send it to someone in iPhone messages.
When it comes to rewards, it’s nothing you probably haven’t seen before. There are definitely other cards out there with better rewards to consider. But when it comes to innovation, Apple may have others beat.
From what we know so far, the Apple Card has no annual fee, overcharge fee or late payment fee. However, we won’t know exactly what “no fees” really means until Apple comes out with their card agreement, which will make everyone aware of the cards detailed terms.
Apple wants to help people manage their money and debt. So, the app the supports the Apple Card will offer features to do just that. The card will categorize all purchases, then show users how much they’ve spent on those purchases over time. The card will also advise on how to pay a bit more monthly to reduce interest costs and offer the ability to pay more frequently than once a month.
From Apple’s press materials, the tools look colorful and easy on the eye—and may encourage better financial behavior, says Dave Girouard, CEO of the online personal lender Upstart and former president of enterprise at Google.
While Apple is not the first to implement this, the apps sleek design and easy accesibility will be a eyeopener to the users spending habits.
Security and Privacy
“Every purchase is secure because it is authorized with Face ID or Touch ID and a one-time unique dynamic security code,” the company says. “The unique security and privacy architecture created for Apple Card means Apple doesn’t know where a customer shopped, what they bought, or how much they paid.”
Apple says that a unique credit card number is created on your iPhone and stored in a special security chip called Secure Element, which is also used by Apple Pay. Apple Pay is known for its privacy and security measures.
Only time will tell
With the official launch coming this summer, we won’t really know how successful the Apple Card will be. While other cards offer similar, and even better rewards – Apple Card may be the next best credit card. Only time will tell.