Apple Virtual Card is (almost) on!
Apple is rolling out its virtual credit card to a select group of customers this week, with wider distribution to iPhone users expected shortly. Unveiled in March, the Goldman Sachs backed-card is seen as a move away from hardware to services by the tech giant. Apple hopes to attract customers by offering the quickest daily cash rewards system of any credit card.
Takeaways
Apple will reportedly launch the Apple Card as soon as the first half of August.
Apple has not announced an official release date for its credit card beyond "this summer."
Card gives users 3% back on purchases at the Apple Store; 2% back using Apple Pay and 1% on all other purchases
Card will also give users purchase tracking dashboards that help them control spending and view rewards
Longer story
Apple is partnering with Goldman Sachs on the card, which will be built into the iPhone's Wallet app and offers perks like no late fees and 2% cash back when using Apple Pay. For places that don't accept Apple Pay, Apple is also launching a physical titanium card, which the company has touted as being highly secure. Unlike most credit cards, Apple's physical card doesn't have any numbers on it, not even a CVV.
Apple and Goldman Sachs have split up the responsibilities when it comes to developing the card, according to Bloomberg. Apple designed the card and the user interface, while Goldman Sachs is responsible for the underlying infrastructure. Apple was reportedly concerned about the mechanics Goldman Sachs had developed for the card, says the report, but this hasn't impacted the Apple Card's summer release date.
As the card's reported launch date draws near, the company is said to have been testing the card with its retail employees, as Bloomberg also previously reported. In addition to providing the perks mentioned above, Apple's Wallet app will also break down purchases according to category and can pinpoint the location of your transactions on a map.
The move represents part of Apple's push into services as it grapples with slowing revenue from iPhone sales. In addition to launching the Apple Card this summer, Apple is expected to launch its Apple TV+ video streaming service and its Apple Arcade gaming subscription later this year. Is it come back of the giant? Will the financial services put the company on a pole position again, and how other FinTechs will react on Tech company entering that sector? Cant wait to get my Apple card and test it, as well watching the space!
