Apple Fintech-To the traditional financial sector’s dismay, nightmares have become reality and Apple is now a banking player. After years of discussion about whether Big Tech corporations will enter this domain, details of a payment card were unveiled, threatening to blow all other newcomers out of the water.
Apple Card, launched in partnership with Mastercard and Goldman Sachs, will leverage the success of Apple Pay and will be available as a built-in feature within the Apple Wallet application on iPhone. Boasting the promise of a “healthier financial life,” the new credit card will also offer 2 percent cashback on all transactions – which they will receive on a daily basis, making the most of this new loyalty and rewards trend that some fintech firms and challenger banks are embedding into their credit products.
Jennifer Bailey, Apple Pay Vice President, added that the intention is for customers to have “a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance.”
In six months, customers in the U.S will be able to sign up for the Apple Card in the Wallet app on their iPhone within minutes and be able to start using it with Apple Pay straight away. While many banks, old and new, now allow customer to sign up for a credit card online, the ability to use credit immediately is an emerging concept.
With challenger banks like Tandem, the customer has to wait to receive the card, activate the card in the mobile app, go to an ATM to activate it again and is only then able to use it to make purchases. Apple has significantly reduced the number of processes that a customer has to go through to use the product, which could result in many Americans opting to sign up for this credit card because of its simplicity.