Apple has launched its virtual credit card today Tuesday, August 6, 2019, on the new iPhone add-on. It did this in partnership with Goldman Sachs, the card insuring bank. With Apple virtual credit card, the holder would benefit by getting 2% cash back on purchases made with Apple service, at no extra fee. The card which is also security centered will store its data on the same iPhone chips that handle Apple Pay; hence, Apple does not have access to users’ procurement data.
Apple has assured that a limited number of its consumers who showed interest in the card would begin receiving sign-up invitations today. The card is built for immediate use with only sign-up and approval requirements. The approval is done through Apple Wallet App and Apple Pay System.
Meanwhile, Apple is offering the physical titanium-made card alternative. The card does not carry the very long card number and other identification information. The identification number sits on a secure chip in the wallet app. So during online or phone purchases that require a number, virtual numbers are generated for that purpose.
Apple virtual credit card is security centered and would protect the privacy of Apple consumers. Since purchase transaction history is kept on the user’s device, both Apple and Goldman are not allowed access to them. Data from the card cannot be accessed and used for marketing purposes. Users’ information is secured.
For Goldman, the issuing bank, the card builds on an expedition into its Marcus consumer banking brand, started in 2015.
Before the card launch, Apple activated an application website that shows the card offering and a demo video on the sign-up process. The website, however, did not accept uninvited iPhone users to apply for the card. Apple had earlier sent invitation emails to a selected number of users to preview the card. These are the first set of Apple customers that would try out the credit card now that it has been launched. Other iPhone users will have to wait until the service is made generally available later in the month.
Business analyst and the head of primary research at Creative Strategies, Ben Bajarin has opined that with Apple’s size of $265.6bn for fiscal 2018, revenue from the card is less important to Apple when compared with its intent to keep Apple customers loyal to its brand. The card’s service success would further get its customers glued and deeply immersed in the Apple ecosystem.
Apple transcends giant tech services to providing the same type of service you’d expect from a typical bank.
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