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Breakingviews - Apple Card puts customer first, Goldman second

17 April 2019

Apple has announced the launch of its first physical credit card with Goldman Sachs.

The physical card has no CVV (card verification value), expiry date or signature.

There will be no extra charge for Apple Card, no late fees will be applicable. And while on your iPhone or iPad iOS severely limits the way you can tinker around with apps, when using the desktop version of News+ things are quite different. Apple Card is built into the Apple Wallet app on iPhone, offering customers a familiar experience with Apple Pay and the ability to manage their card right on their iPhones. Whereas, the Master Card company for the Global Payments Network will cooperate. It'll make it easy to track all the shows you watch, and it'll give you a single portal through which you can access all (well, most) of that content. Apple has multiple developers working on games exclusively for Apple Arcade, which includes such legendary developers as Hironobu Sakaguchi (creator of Final Fantasy), Ken Wong (Monument Valley), Will Wright (SimCity, The Sims), and Charles Cecil (Broken Sword).

But the card's cash rewards fall short of what more traditional cars offer. And that doesn't even include Apple Music (which I no longer pay for), or the $20 a month I spend in the App Store on app subscriptions and one-off app purchases (of which Apple gets a sizable cut). This card will run in places where Apple Pay will not support.

Still, younger consumers, especially those in the coveted Gen Z demographic, might be enticed by the functionality the card offers. The Apple Card is a virtual credit card completely transparent and independent of any banks. Similarly, when it comes to earning and redeeming your cash back, rewards are credited daily and can be used more or less immediately. This is a Next Generation Credit Card, in which the company has launched a lot of advanced features. You can use Apple Cards anywhere at a shopping store or coffee shop.

Gen Z, the group born between the mid-1990s and 2010, is already known for its financial literacy.

With Apple making a bigger push into video, the marketplace is becoming even more crowded. Nor have, in fact, most other major USA newspapers.

"They're more likely to take on another tool if it helps them feel like they're not just using a cool new tool that inspires them to feel good about money, but helps them actually achieve their financial goals", he says. Protected exclusively by the user's fingerprint and face ID, the Apple Card hosts no number and has a set of complex algorithms working to make it one of the most secure systems.

But there are some skeptics. The Journal has tried to chase new readers on other services as well; for example, it has produced stories formulated for Snapchat, a social media service dominated by younger people. Two years ago, the bank introduced a new consumer-facing online bank called Marcus, named after Goldman Sachs founder Marcus Goldman and aimed at younger customers. So if you're not into optimizing rewards by juggling multiple cards to earn higher rates on specific purchases, the Apple Card could work well for you.

Breakingviews - Apple Card puts customer first, Goldman second