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Apple's new financial product offers convenient services for its users, especially on issues such as privacy. But what's new?
Among the various announcements made at Apple's special event in Cupertino, Tim Cook spoke about the Apple Card, a new product that would be expanding the company's presence in the world of finance.
This would be a credit card backed by Goldman Sachs and MasterCard. Cook assured that Apple Card would be completely renewing the concept of a credit card. Besides, the official page describes it as simple, transparent and private.
Leer en español: ¿Qué tiene para ofrecer la nueva Apple Card?
According to them, it is the first card that pays less interest and with which you can buy different products without effort, using only an iPhone.
How does it work?
The Apple Card would be arriving this summer and may be requested through the Apple Wallet application.
So, as The Verge clarifies, to apply for this new credit card, you must have an iPhone and, secondly, some credit history. However, Apple has not shared a specific credit score to be eligible.
Once the person is approved, they will have instant access to the digital version through the Wallet App. After a waiting period, the physical card, made in titanium, will arrive and can be used in stores that accept MasterCard.
Now, one of the highlights of the card is based on what is called Cash Back or money that you give in exchange for each purchase made. That is cash that the user can spend in the way they want from their cell phone.
This is returned in percentages depending on the purchase that has been made. That is, if an Apple product is purchased, from applications, cell phones, and even more storage for iCloud, they will be returning 3% of the total value. When you buy something through Apple Pay, you get 2% and, finally, if any store or application does not accept Apple Pay, 1% of the purchase is returned.
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Another important aspect that they promote in their new product is transparency and the visual aid that facilitates the application to save interest and pay in a timely and adequate manner. If the user cannot pay the full amount, he can calculate and estimate the interests according to what he wants to spend. Thus, they ensure that a decision can be made in an informed manner.
They concentrate on the fact that other cards have rates, while this does not. Neither international nor annual. So the balance will never rise from surprise. They intend, with Apple Card, to provide the lowest interests in the industry. They also do not charge penalty fees when you do not pay on time.
The card will not have an annual fee and will not charge penalty fees if the debt is not paid on time.
Security is behind the innovation of Apple Card
Cook says that the most revolutionary of this card is the new level of privacy and security, a topic with which several technology companies, such as Facebook, have had problems.
This aspect of privacy is the most original in his proposal because "it is something increasingly rare in the digital world," explained financial journalist John Detrixhe in an analysis for Quartz to the BBC.
Detrixhe also said that "Cook has given his rivals the slip in terms of data privacy, taking advantage of every opportunity to enhance the business model focused on Apple's iPhone, which is highlighted in the world where the Personal information fuels the digital economy to a large extent. "
Apple clarifies that it will not know where its customers buy, how much they pay or what they buy. On the other hand, Goldman Sachs will use the personal data of the clients to operate the card, but they will not be sold to third parties or advertising campaigns.
However, for protection and security, Apple also promises that only the owner of the card can use it through its advanced Face ID, Touch ID and unique transaction codes.
As for the physical card, it will not have the card numbers, CVV and expiration date. If they are necessary to make a purchase, the application may generate them.
Other companies with their credit cards
The Verge compares this new Apple Card with cards from companies such as Amazon and Uber, which also offer their credit cards. However, the rewards of these rivals are based on bonuses, which Apple does not have.
For example, Amazon offers a 5% cash back on all Amazon purchases and a $ 50 gift voucher when creating an account. Also, Uber offers 4% on all food, plus $ 100 back when spending $ 500 in the first three months.
Experts, including Goldman Sachs, agree that Apple Card could offer better returns
In this financial aspect and cash back, Apple also has other rivals such as the Citi Double Cash card, which also provides 1% of the money in each purchase and 1% as you pay those purchases. Also, it does not have an annual fee either.
There is also the Chase Freedom Unlimited that gives a bonus of $ 150 to its customers after having used $ 500 in the first three months since the opening of the account. This card and the Capital One QuickSilver return 1.5%.
LatinAmerican Post | Valentina Moya
Translated from "¿Qué tiene para ofrecer la nueva Apple Card?"
