"This service won't take on new cloud-based streaming offerings like Google Stadia". The physical version of the card has no numbers, and the digital version lives in your Apple Wallet on your phone, where it's protected by Face ID or Touch ID so even if someone steals your phone they won't be able to use the card to buy things.
Considering the fact that services like Apple Pay and Google Pay have been around for quite some time, Apple has felt the need to introduce a complete standalone credit card service for Apple enthusiasts. But again, the Apple Card isn't something that appeals to me personally.
First, let's talk about the benefits and unique features offered by the Apple Card.
The move comes as mobile payments are poised to get a boost from efforts in the USA to encourage retailers to accept tap-to-pay cards, which use the same near-field communication technology as Apple Pay.
We only have a few titles confirmed for Apple Arcade so far - Sonic Racing and Sayonara Wild Hearts among them - with no details on pricing.
Goldman Sachs Group Inc will issue the cards to users. "We're working closely with these visionaries to help them realize the games of their dreams - and yours". Apple said the Apple card will attract "no late fees, no annual fees, no global fees, and no over limit fees and lower interest rates".
While the amount of loans is small compared to the bank's overall balance sheet, Hawken said investors would likely prefer Goldman stick to using its consumer business to add deposits, as opposed to personal loans or credit card debt. Consumers will enjoy a $2 cash back every time they spend, although that rate increases to a $3 cash back if they make purchases from Apple. But the product's features make it the credit card equivalent of a Red Delicious: relatively ubiquitous and somewhat bland. The issuer won't charge any annual fee, meaning you can simply carry it without even using it and not have to worry about paying a fee at the end of the year. Users can do all their transactions with the help of smartphones. This makes it flawless for frequent overseas travelers.
The good: Security and privacy, two areas Apple prides itself on, are a clear focus.
The Apple Card can be virtually used anywhere where there is support for Apple Pay and other services by Apple.
"They might securitize the debt, which wouldn't be anything new for an investment bank", Siegel said. The unusual thing is that in order to muscle in on a competitive industry, issuer Goldman Sachs has tossed aside numerous features that make the card business lucrative for banks in the first place.
The use of this digital credit card could sink one deeper into debt, considering the enticing cash back rewards.
Large banks such as JPMorgan Chase & Co and Bank of America Corp have pledged to introduce more so-called contactless cards in the U.S., prompting larger merchants and transit systems around the United States to accept them. Users can pay the bills weekly rather than monthly to reduce the interest payment.