Apple Credit Card: five facts to know ahead of the US August launch
Technology giants Apple Inc. have partnered with Mastercard Inc. and Goldman Sachs Group Inc. to reimagine the classic credit card. The new product is said to represent all the things Apple stands for: simplicity, transparency, and privacy. The Apple Card is scheduled to hit the U.S. this August.
Following on from our top five Apple Card features back in March, FinTech takes a look at some of the newly released information the product's features:
1. Greater control over finance
Apple’s key aim for its new product is to enable customers to have a better control of their money. The company states that it is “the first credit card that actually encourages you to pay less interest.”
2. A new addition to the Apple wallet
Building upon the current function of the Apple Wallet, the card will sit within the digital wallet. Users will be able to see a breakdown of not just their total spend both monthly and weekly, but a breakdown in spending trends and spending locations all into categories by type of purchase.
3. Real-time finance
The user will also be able to see in their wallet real-time interest rates as well as being able to set up end of month, weekly or bi-weekly payments. This feature builds upon Apple’s aim to encourage healthier finance by actively allowing their customers to pay off more of their bill rather than the minimum payment at a time that suits their users best.
4. Cashback rewards
In addition to this there are no hidden fees but real cash rewards. Users can receive 3% cashback when purchasing an Apple product, receive 2% cashback when using Apple Pay and 1% cashback for using the Apple Card in stores that do not yet have Apple Pay. Use of the cashback is to the discretion of the user.
5. New cybersecurity solutions
Apple ranks its development of the level of their security for each product highly and the Apple Card is no exception. When a user first activates their Apple Card a unique number is generated and locked away within the Secure Element of the users iPhone which can be regenerated at any time manually. With every purchase the device number is required as well as a unique one-time security code, both of which are automatically inputted when using safari, but can be manually found if required for over the phone transactions.
Its physical version for store purchases without Apple Pay is no different, the titanium card has no long card number, no expiry date, no signature and no CVV, all security information is stored within the Secure Element of the iPhone in order to prevent fraud.
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However, with all these features in mind, Apple still has regular fraudulent activity protection measure in place, but its real time. For every purchase via Apple Pay the use of Face ID or Touch ID is require to further prevent fraud and a notification will be sent to the users iPhone to further confirm a purchase. Other notification users may receive is unusual activity i.e. large money purchases where the user will be given the option to confirm or report the fraudulent activity and will not be liable according to the tech giant. If fraudulent activity is reported or a user loses the card, the account can be frozen and a new one can be ordered from the Apple Wallet.
Apple believe in their customers right to privacy which is why they have created a software for the Apple Card that generates summaries from the users iPhone as well as all data being held with Goldman Sachs who will “never share or sell your data to third parties for marketing or advertising.”
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG