5 things you need to know about new Netflix-killer
- Author: David Armstrong Mar 28, 2019,
Mar 28, 2019, 1:51
Apple is rolling out a credit card that it says is created to do things no other card can. Apple also joins a crowded market and it's not clear how many more monthly subscriptions people have the money and the bandwidth for.
The only difference is that it won't link to your current bank with Apple looking after all the payments and bills.
"With Apple Card we have completely rethought the credit card".
A note on the interest rates as well: The card doesn't come out until summer, but Apple has said as of March, the variable annual percentage rate on the card could be anywhere from 13.24 percent to 24.24 percent based on creditworthiness.
Apple Card is built directly into the Apple Wallet app on iPhones thus giving Apple Pay users a familiar experience.
Apple's new credit card is a remarkable thing. This new product aims to help people gain a better view of how they spend using Apple's latest technology. Apple is partnering up with Goldman Sachs and Mastercard to issue the Apple Card. (Sorry android users). Another "check" it can add to your list is that it is simplistic, does not require laborious applications, adds more privacy and its colorful display and plain symbols makes it easy to understand and have your financial life healthy. Now, we can easily make a joke here about the tech savviness of Apple users, but the truth is that there are more than enough power users on Apple's platforms for the "we didn't think anyone will find out" argument to not hold up.
Apple Pay now represents less than 2% of volume on major networks like Visa and Mastercard, according to Harshita Rawat, an analyst at Sanford C Bernstein & Co.
While some credit cards have you earn points, the Apple Card has you earn Daily Cash. For purchases made by means of the App Store, iTunes, or other direct-from-Apple purchases, you'll get 3% cash back. What you choose to do with it is up to you, from using it toward another purchase or sending it to your bank account.
The Apple Card is completely controlled by the Apple Wallet app where all authorization information is stored. Apple Card, which works within the Apple Pay app, will also be available as a physical card when it launches in the USA in the summer.
Speaking of Apple Pay Cash, the feature is now simply called Apple Cash with this now tied to rewards for using your Apple Card. It is also no longer selling subscriptions through Apple's App Store - a protest at the 30 per cent cut Apple takes from all subscription apps sold through the platform. The purchases made are also automatically totaled and are organized by categories with color-codes.
So it's for money you already have, rather than credit you don't have - which some might see as a benefit.
We've talked in detail about what Apple Card is here, so we'll be very brief. That could entice some of the 1.4 billion active Apple device users to take the card.
This will be the first launched in the industry that encourages and promises users to pay fewer interest rates while offering transparency.
As for your payment due date, with Apple Card, it is the last day of the month, although you can also set up weekly or biweekly payments to align with your payday.
Credit risk concerns aside, analysts said that Goldman's decision to launch its first credit card in partnership with one of the world's biggest companies gives it the opportunity to gain consumer market share. Maps will show you where you purchased something, and when - it'll not only tell you the vendor's name, but also show you on a map.