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The president of North American operations of Mastercard told CNBC on Tuesday that Apple's new no-number and "digital" credit card provides increased security to users.
"Do not have a card number on the physical card, if the consumer chooses to get it, help [with security] certainly because someone can not just write that and take it, "said Craig Vosburg of Mastercard in" Squawk Alley. "
Earlier Tuesday, Apple announced the official launch of its new Apple card, a credit card integrated with the iPhone, in partnership with Goldman Sachs and Mastercard.
Unlike standard credit cards, the Apple Card does not have a sixteen digit number and the company encourages users not to swipe for transactions.
Vosburg explained that this product is more secure because users are getting a single use number in the Wallet app. "The real key to improving security here is happening in the shadows where we are in the process of defining card identification information."
He added: "We take the digital representation of this sixteen-digit number and the scrambling [it] in a code that only Goldman Sachs and we can recognize. We know where it is intended to be used. We know that it is meant to be used with this Apple device and if it appears elsewhere, we know that it has been compromised and that we can kill it. "
IPhone users can request the card through the Wallet app and start using it immediately with Apple Pay in apps and in stores. The credit card can only be registered on an iPhone and the majority of transactions and interfaces take place on the phone. The latest product from Apple is aimed primarily at keeping users in the Apple ecosystem and, more importantly, making it more difficult to switch to Android.
According to Vosburg, the "first digital card" uses "Mastercard technology in conjunction with Apple and Goldman Sachs" to bring in and create a "new kind of consumer experience".
"This is the way so many consumers live their lives, especially consumers who identify closely with the Apple brand and the Apple ecosystem," he said. "We want to have payment capabilities that are closely aligned with the way they live their lives."
Following the launch of the Apple card, Apple shares rose by more than 1%.
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