On March 25, 2019 during a keynote event Apple, in partnership with Goldman Sachs and Mastercard, announced Apple Card. A credit card by Apple with no fees —no annual, cash-advance, over-the-limit, international, or late fees (late or missed payments are subject to interest)— that gives Apple users the ability to sign up for Apple Card using the Apple Wallet application and to make purchases using apple pay.
Introduction to Apple Card.
The announcement came after Tim Cook claimed Apple Pay will surpass 10 billion transactions worldwide, and by the end of 2019 Apple pay is expected to be available in over 40 countries. Apple Card can be used for making purchases at any business accepting Apple pay; approximately 70% of business in the United States are currently accepting Apple Pay at the time of the announcement of Apple Card.
Every Apple Card is issued with a unique card number that is stored on the Secure Element (security chip) used by Apple Pay; and every Apple Card transaction requires Face ID or Touch ID authentication in combination with a one-time use dynamic security code. All data associated with Apple Card transactions is processed and stored locally on each users device so Apple (or third parties i.e Goldman Sachs or Mastercard) does not know where customers have shopped, purchased, or how much they have paid for products and services.
For situations where Apple Card users want to make purchases using Apple Card and Apple Pay is not available, Apple offers a physical Apple Card made out of titanium. The titanium Apple Card can be used like a regular credit card and has no card number, CVV security code, expiration date, or user signature. All information related to the cards transactions are processed and stored as if the customer was using their Apple Card through the Apple Pay wallet application.
The Apple Card offers users a Daily Cash reward program that gives users a percentage of the money they spend back every day. Daily Cash can be used the same as actual cash using Apple Pay, for example, users are able to make purchases or pay their Apple Card balance using Daily Cash. The titanium Apple Card offers users 1% Daily Cash back on the value of their purchases, while the Apple Card used through Apple pay offers users 2% Daily Cash on their transactions and 3% daily cash for the purchase of products and services offered by Apple.
