I have not been able to stop thinking about thesince the maker of the iPhone has announced the new Monday. Reinventing credit card payments on the iPhone is a bold but brilliant initiative that has nothing to do with the service itself or with anything that aims to immerse you deeper into the business. 39, Apple's ecosystem.
The benefits of the Apple card look promising: Apple's promisesdesigned to avoid common fraud with credit card fraud. It offers up to 3% cash back and a visual financial tracking that keeps you on top of your payments. And there is no charge for exceeding your limit, using the card abroad or even paying the card late – things that other cards are ready to charge. However, you .
The payments world is not new to Apple, which launched its mobile payment system, Apple Pay, in 2014. But a full credit card, backed by the payment network of Mastercard and Goldman Sachs, represents the coup de Apple's thunder in the banking sector. This will affect Visa, Google Pay, Samsung Pay and all other digital payment players.
Competitors should be careful. Apple has a supernatural ability to leverage its cult status to create a hype around products and services to compel others to follow them, even if they arrived first. But it's the brands of rival phones Apple should be the most concerned – Samsung, Huawei and Google Pixel – not because they may want to create their own credit cards (which they probably will not ), but because anyone who subscribes to an Apple card is essentially tied to the iPhone as long as they have the card.
Many Apple product owners are already locked into the ecosystem because of their Mac, iPad, iTunes and App Store purchases. Staying in the Apple family is more convenient.and on the iPhone, sync also with the Mac, for example, and AirDrop is a great way to transfer files seamlessly between devices. But it is still possible to coexist with a Macbook Air and an Android phone. I do it at least 50% of the time.
But a credit card that only works on the iPhone will only make you more dependent on your iPhone.
Apple Card = iPhone 4 lyfe
The iPhone is fundamental to the inner workings of the Apple card.
Most of the features of the Apple Card are found in the digital wallet app on your iPhone. This involves more than tracking your balance and paying your card online. The Apple Card relies on your iPhone's Secure Element chip to process transactions with every purchase, which means you must have one if you want to use the credit card.
You also need the Wallet app to monitor your account. Do not forget that this data is calculated on your device and not online. So you can not just search your account details from a browser window on your desktop or in a separate application like you. would be with your usual bank. Apple thinks it will protect you from hackers because the details are calculated on your phone. No iPhone, no Apple card.
The physical map does not make sense in itself
How does the physical Apple card integrate? Excellent question. Apple also gives you a physical card with your name engraved on a titanium rectangle and voila: no numbers, no expiry date, no CVV (these three numbers on the back that check your card), no other identifying details that would allow someone to commit a fraud against you if they see your card or seize it.
If you need to access this information, you will launch the Wallet app of the iPhone. (Better not to lose your iPhone.)
The titanium card exists because not all point-of-sale terminals accept Apple Pay. Compare that with Samsung Pay, which can also work as the magnetic stripe of your credit card. However, by giving the card a look as iconic as Apple, the company has brilliantly turned a negative (Apple Pay does not work at each payment terminal) into a coveted status symbol by creating a product that people will recognize instantly. A titanium card is the Apple card. But it will not work without your iPhone.
The benefits of the Apple card make it easy to pay on the iPhone
Apple wants to manage all aspects of your credit card through the iPhone, since issuing a line of credit in "minutes" (you must have a sufficient credit rating to to be able to participate) in the payment of your purchases online or in a virtual store. and transfer payments to third parties via the app.
You do not need to load a new card in Apple Pay, you can use it on all your Apple devices and authenticate with a face ID or touch ID. The iPhone Wallet app will also help you track your finances and estimate the amount you will pay if you can not clear your monthly balance at the same time.
In addition, you will accumulate daily cash – a cash rebate of 1% to 3% – that can be used for any purchase or even the repayment of your monthly bill. These cash back rates are not at the top, but the convenience factor will be high, especially if you use some of this discount to buy the iPhone next year.
What happens if you leave Apple Card?
We have explored the benefits of the Apple card, but there is yet another reason why the Apple credit card locks you on an iPhone: What happens if you cancel?
People open or cancel lines of credit every day, but they can affect your credit score. It is common knowledge that frequently opening and closing cards may seem less reliable. Therefore, if you choose to receive the Apple Card, you will want to keep it for a while – and, by extension, an iPhone.
Credit card advice sites, such as Credit Karma and Nerd Wallet, warn you against closing your old account, which reduces the average age of your credit history. In return, this gives the impression that you have a shorter debt repayment history than you could ever have, and the story is good when you apply for a loan, rent an apartment or make a deposit on a house.
Apple has not publicly stated that it will not support Android, which would make it available to families or individuals with both iOS and Android devices. But its security configuration and its location in the wallet mean that it's an iPhone or a bust.
If you want to use an Apple card, you use an iPhone. And if your iPhone is linked to your credit card, why would you have something else?