Apple Inc. rolled out its virtual credit card yesterday, alongside Goldman Sachs Group Inc.. with the endeavor to help Apple diversify from device sales and build out the Wall Street bank’s new consumer business.
Apple aims to encourage iPhone owners by offering A 2% cash back on purchases with the Apple Pay service. It will be an app that manages related finance and takes pride with its data privacy feature.
According to issuing bank Goldman, the card draws its initial attempt into its Marcus consumer banking brand, which started in 2015.
Apple said there was a limited number of consumers who expressed interest in the card. The same group would start to receive sign-up invitations from Apple.
Basically the card is designed to work with the iPhone. Users sign up for the card and can start using it immediately if approved via the Apple Wallet app and Apple Pay system.
An option for a physical card made of titanium is available but the physical card has no visible number. Instead,it is stored on a secure chip inside the iPhone, which generates virtual numbers for online or over-the-phone purchases requiring a number.
Moreover, Apple exceedingly focused on privacy, emphasizing that purchase information is stored on the user’s iPhone and that it cannot see the information. Also, Goldman will not be allowed to use data for marketing purposes.
While Apple Card adoption is likely to have a slow start, it could generate about US$1.4 billion of high-margin revenue by 2023. Apple has approximately 50 million US Apple Pay users as of now.