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 Example of physical Apple Card | |
| Location | United States |
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| Launched | August 20, 2019 |
| Technology | |
| Operator |
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| Website | applecard |
Apple Card is a credit card created by Apple Inc. and issued by Goldman Sachs, designed primarily to be used with Apple Pay on an Apple device such as an iPhone, iPad, Apple Watch, or Mac. [1] [2] Currently, it is available only in the United States, with 6.7 million American cardholders in early 2022. [3] [4]
On August 6, 2019, invitations to an early preview started being sent to randomly selected users who had previously signed up for email notifications ahead of Apple Card's official launch. [5] It was released in the United States on August 20, 2019. [6] Additional cardholders and joint accounts were not supported at its launch. [7]
The card features a number of consumer-friendly features including no fees, software that encourages users to avoid debt or pay it down quickly, the industry’s lowest interest rate range for comparable cards, and a mandate to approve as many iPhone users as possible. These features are seen as being risky for a bank to take on, and led other banks with established consumer credit card operations including Apple's long time partner Barclays, along with Citigroup, JPMorgan Chase and Synchrony, to turn down Apple's proposal. [8] [9] Goldman Sachs defended the terms of the deal saying they were "thrilled" with the partnership and seeking "to disrupt consumer finance by putting the customer first." [8]
Apple Card was announced at an Apple Special Event on March 25, 2019. Unlike previous special events which have historically served as platforms to announce upcoming hardware, this event focused on new internet software and services. Other services announced at the event include Apple TV+, Apple News+, and Apple Arcade. [10] [11]
On April 20, 2021, Apple announced that it would be introducing joint accounts and additional cardholders. These features have been introduced under the brand Apple Card Family. Individuals 18 years and older can be co-owners of the account, while individuals 13 years and older can be additional cardholders. Up to five individuals may be additional cardholders or co-owners. [12]
In January 2023, Bloomberg reported that Goldman Sachs suffered $1 billion in losses because of the card. [13]
On April 17, 2023, Apple began offering a high-yield savings account backed by Goldman Sachs to Apple Card users. [14] The Wall Street Journal reported in June 2023 that Goldman Sachs had entered into discussions with American Express to explore the possibility that American Express might take over the partnership, replacing Goldman. [15]
Users can apply for an Apple Card directly from within the Wallet app. [16] [17] Upon approval, a digital Apple Card is made available immediately on all of the user's devices. Users also can order a physical card for use at locations that do not accept contactless payments. [18]
The physical card does not display numbers on the front; instead, users receive a 16-digit virtual card number for websites and apps that do not accept Apple Pay. [19] Apple Card details are accessible in the user's iCloud Keychain and can be auto-filled into online forms. [20]
Apple has designed a titanium Apple Card for shopping at locations where Apple Pay contactless payment is not accepted. [21] The logos on the card are engraved, and the cardholder's name is laser-etched onto the card. [22] [23] The card has no card number, CVV security code, expiration date, or signature printed on the card. [21]
On delivery, users with the iPhone XS and above can activate the physical card by moving their phone near a NFC tag concealed within the card's packaging. [24] Users with an iPhone X or earlier need to open the Wallet app before tapping the phone against the card. [25]
Regular purchases made using the physical card earn 1%, purchases made with Apple Pay earn 2%, and purchases at Apple Stores and selected partners earn 3%. Cashback on eligible purchases is deposited into the customer's Apple Cash account, or deposited in the customer’s Apple Card Savings Account, or applied as a statement credit. [26] [27] [28]
Apple Card does not charge late, foreign transaction, returned payment, or annual credit card fees, but it does generate interest fees when carrying a balance and interchange fees charged to the vendor. [29] [17]
Launched on April 17, 2023, it allows Apple Card owners and co-owners to open a 4.15% savings account to deposit their Daily Cash, [30] with no fees and no minimum balance. [31]
The Wallet app collates Apple Card transactions by category and provides weekly and monthly activity summaries. [21] Apple Maps is used to provide a colour-coded category, map location, and contact details for the merchant (where available). [32]
Apple added support for users to give third-party budgeting apps access to transaction data for budget management in iOS 17.4 [33]
A unique card number is created for each device and is stored in a secure element which is used by Apple Pay to handle transactions and on-device cryptographic functions. Each transaction uses its own one-time dynamic security code and is authorized with Face ID, Touch ID, [34] or passcode. [35]
As with Apple Cash, transaction history for Apple Card is stored on and synced across devices using iCloud and encrypted such that only the authorized account holder can view it. [36] Two-factor authentication must be enabled on the user's Apple ID account in order to apply for Apple Card. [7] [37]
For Apple Card's initial US launch, Goldman Sachs assumed the role of the issuing bank, [38] [2] [37] [39] [40] while Mastercard served as the payment network. [41]
In March 2020, about 3.1 million Americans held the Apple Card. That number grew to 6.7 million cardholders as of early 2022. [4] Six in ten Apple Card users use it as their primary credit card. [42]
On October 1, 2019, MarketWatch published an article stating that Goldman Sachs is not reporting payments to the credit reporting agencies. [43] The article suggests that Apple and Goldman Sachs rushed development of the card, and that the companies would fix the issue over time.
On November 7, 2019, David Heinemeier Hansson posted on Twitter that he was given 20 times the credit limit than was offered to his wife despite her having a better credit score. He accused Goldman Sachs of gender discrimination by using algorithms to determine a person's credit limit. [44] Apple's co-founder Steve Wozniak also tweeted that he received ten times the credit limit that his wife was offered. [45] In response to Hansson's tweets, the New York State Department of Financial Services launched an investigation into Goldman Sachs's practices. [44]
On March 23, 2021, the New York State Department of Financial Services issued a report summarizing its findings after investigating consumer complaints about the Apple Card. The investigation, which included a review of several thousand pages of records and written responses from Goldman Sachs Bank and Apple, interviews of witnesses and Apple Card applicants, and analysis of underwriting data for approximately 400,000 New York State applicants for the Apple Card, did not produce evidence of unlawful discrimination against applicants under fair lending law. [46]
A debit card, also known as a check card or bank card, is a payment card that can be used in place of cash to make purchases. The card usually consists of the bank's name, a card number, the cardholder's name, and an expiration date, on either the front or the back. Many of the new cards now have a chip on them, which allows people to use their card by touch (contactless), or by inserting the card and keying in a PIN as with swiping the magnetic stripe. These are similar to a credit card, but unlike a credit card, the money for the purchase must be in the cardholder's bank account at the time of the purchase and is immediately transferred directly from that account to the merchant's account to pay for the purchase.
PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers; it serves as an electronic alternative to traditional paper methods such as checks and money orders. The company operates as a payment processor for online vendors, auction sites and many other commercial users, for which it charges a fee.
Mobile payment, also referred to as mobile money, mobile money transfer and mobile wallet, is any of various payment processing services operated under financial regulations and performed from or via a mobile device. Instead of paying with cash, cheque, or credit card, a consumer can use a payment app on a mobile device to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history, it is only in the 21st century that the technology to support such systems has become widely available.
Mastercard Inc. is the second-largest payment-technology corporation worldwide. It offers a range of payment transaction processing and other related-payment services. Its headquarters are in Purchase, New York. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard-brand debit, credit and prepaid cards to make purchases. Mastercard has been publicly traded since 2006.
The EZ-Link card is a rechargeable contactless smart card and electronic money system that is primarily used as a payment method for public transport such as bus and rail lines in Singapore. A standard EZ-Link card is a credit-card-sized stored-value contact-less smart-card that comes in a variety of colours, as well as limited edition designs. It is sold by TransitLink Pte Ltd, a subsidiary of the Land Transport Authority (LTA), and can be used on travel modes across Singapore, including the Mass Rapid Transit (MRT), the Light Rail Transit (LRT), public buses which are operated by SBS Transit, SMRT Buses, Tower Transit Singapore and Go-Ahead Singapore, as well as the Sentosa Express.
Network for Electronic Transfers, colloquially known as NETS, is a Singaporean electronic payment service provider. Founded in 1986 by a consortium of local banks, it aims to establish the debit network and drive the adoption of electronic payments in Singapore. It is owned by DBS Bank, OCBC Bank and United Overseas Bank (UOB).
Google Pay Send, previously known as Google Wallet, was a peer-to-peer payments service developed by Google before its merger into Google Pay. It allowed people to send and receive money from a mobile device or desktop computer.
Contactless payment systems are credit cards and debit cards, key fobs, smart cards, or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID) or near-field communication (NFC) for making secure payments. The embedded integrated circuit chip and antenna enable consumers to wave their card, fob, or handheld device over a reader at the Point-of-sale terminal. Contactless payments are made in close physical proximity, unlike other types of mobile payments which use broad-area cellular or Wi-Fi networks and do not involve close physical proximity.
Credit card fraud is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The purpose may be to obtain goods or services or to make payment to another account, which is controlled by a criminal. The Payment Card Industry Data Security Standard is the data security standard created to help financial institutions process card payments securely and reduce card fraud.
A credit card is a payment card, usually issued by a bank, allowing its users to purchase goods or services or withdraw cash on credit. Using the card thus accrues debt that has to be repaid later. Credit cards are one of the most widely used forms of payment across the world.
Block, Inc. is a U.S. public company founded by Jack Dorsey and Jim McKelvey in 2009. It is a financial technology conglomerate, reportedly serving 56 million users and 4 million businesses, with an annual payment processing volume of US$228 billion as of 2023.
A card security code is a series of numbers that, in addition to the bank card number, is printed on a credit or debit card. The CSC is used as a security feature for card not present transactions, where a personal identification number (PIN) cannot be manually entered by the cardholder. It was instituted to reduce the incidence of credit card fraud.
LevelUp is an American mobile ordering and mobile payments platform created by Boston, Massachusetts–based start-up SCVNGR. On July 25, 2018, it was announced that LevelUp would be acquired for US$390 million by Grubhub, an online food delivery platform.
Apple Wallet is a digital wallet developed by Apple Inc. and included with iOS and watchOS that allows users to store Wallet passes such as coupons, boarding passes, student ID cards, government ID cards, business credentials, resort passes, car keys, home keys, event tickets, public transportation passes, store cards, and – starting with iOS 8.1 – credit cards, and debit cards for use via Apple Pay.
Apple Pay is a mobile payment service by Apple Inc. that allows users to make payments in person, in iOS apps, and on the web. It is supported on iPhone, Apple Watch, iPad, Mac, and Vision Pro. It digitizes and can replace a credit or debit card chip and PIN transaction at a contactless-capable point-of-sale terminal. It does not require Apple Pay–specific contactless payment terminals; it can work with any merchant that accepts contactless payments. It adds two-factor authentication via Touch ID, Face ID, Optic ID, PIN, or passcode. Devices wirelessly communicate with point of sale systems using near field communication (NFC), with an embedded secure element (eSE) to securely store payment data and perform cryptographic functions, and Apple's Touch ID and Face ID for biometric authentication.
Venmo is an American mobile payment service founded in 2009 and owned by PayPal since 2013. Venmo is aimed at users who wish to split their bills. Account holders can transfer funds to others via a mobile phone app; both the sender and receiver must live in the United States. Venmo also operates as a small social network, as users can observe other users’ public transactions with posts and emoticons. In 2021, the company handled $230 billion in transactions and generated $850 million in revenue. Users can view transactions on the Venmo website but users cannot complete transactions on the website and you will need to complete transactions on a mobile phone using iOS or Android.
Google Pay is a mobile payment service developed by Google to power in-app, online, and in-person contactless purchases on mobile devices, enabling users to make payments with Android phones, tablets, or watches. Users can authenticate via a PIN, passcode, or biometrics such as 3D face scanning or fingerprint recognition.
Cash App is a mobile payment service available in the United States and the United Kingdom that allows users to transfer money to one another using a mobile phone app. In February 2023, the service reported 51 million monthly transacting users and US$10.6 billion in annual revenues.
Curve is a payment card that aggregates multiple payment cards through its accompanying mobile app, allowing a user to make payments and withdrawals from a single card. It lets you "switch the bank card you paid with after each transaction is complete." Curve named this feature "Back in time".
Google Wallet is a digital wallet platform developed by Google. It is available for the Android, Wear OS, and Fitbit OS operating systems, and was announced on May 11, 2022, at the 2022 Google I/O keynote. It began rolling out on Android smartphones on July 18.
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