Apple has followed in the footsteps of Amazon with the debut of the new Apple Card. Unlike traditional applications, one can apply directly on their iPhone and, once approved, the card is stored digitally on the Wallet app where you can view your statements, balance, and payment due dates.
The card will generate new security codes each time you make a purchase. It doesn’t even have a credit card number, CVV, signature, or expiration date. Details on what you’ve purchased are also stored locally to, again, prevent potential ad targeting.
The company is making Apple Card available through partnerships with Goldman Sachs and Mastercard, without annual fees. The card offers a 2 percent cash back reward (3% for Apple purchases) that is paid daily into your Apple Pay account that you can use toward paying your credit card balance, in-app purchases, or transferring to friends.
The card should be accepted wherever Mastercard is. Apple will also offer a physical titanium card for real-life uses or when you’re traveling, but rewards for those purchases are 1 percent cash back.
According to Apple, there are no late fees or increased interest rates for late payments, but we’ll read the fine details to see if there are limits. The app will offer a wheel that shows you how much interest you will end up paying based on the minimum payments you make to help you make your decisions. The Apple Card will be available this summer.