In a push from big tech to enter the financial sector, the latest in line is Apple. Back in March 2019, we heard Apple’s plans with Goldman Sachs to launch a credit card for its customers. Now those plans are set to be realised with the launch imminent in the next 2-3 weeks, per schedule, according to Bloomberg report.
As reported by TechCrunch, iPhone users with the most recent iOS 12.4 update will be able to sign up for the card as soon as it is announced. However, this is for customers based in the United States of America. There has been no announcement or clarity for customers in other parts of the world. We will keep you informed as soon as there are any developments.
Apple employees have already been able to sign up for the credit card, many of them using it for weeks ahead of the launch to ensure security and proper functioning.
The credit card work on a cashback structure, giving 1% back when you pay with your card, 2% when you purchase with Apple Pay, and 3% if it is an Apple product or service purchased. The cashback is credited to the Apple Card, which one can transfer to their bank accounts.
The payment for the credit card will naturally have to be made through a bank account. The physical credit card will serve to pay at points where Apple Pay is not accepted, and will work on the MasterCard network.
The Apple Card does not have any card number, perhaps making it safer. When one does need a credit card number for purchases made on certain websites that do not accept Apple Pay, Apple Wallet will generate a unique card number that one can then use.
Considering a company that wants to work in the financial sector needs to be regulated and licensed by certain authorities, Apple and Goldman Sachs have partnered on this venture, where the former will manage the technical aspect, while the latter will take care of the banking infrastructure needed to operate the card.
Apple is a great partner and we together are excited about delivering a product that we think customers will love.Goldman Sachs spokesman
This move is big for Goldman Sachs as it enters the individual customer space. As the FinTech space develops further, and big tech corporations enter the arena, older financial institutions that do not adapt to the changing market may find themselves obsolete in the coming years.
This move by Apple and Goldman is just one example of how the market is changing. More than a month ago, Facebook announced its plans for Libra, a digital cryptocurrency that is being developed to help FinTech services become more accessible to everyone in society. On the other hand, WhatsApp is set to introduce its payment feature.
This signals a trend towards a move towards borderless trasactions, where the FinTech sector will essentially take over the traditional banking industry. However, with the increasing sophistication of cyber hacking, security remains tech firms’ biggest challenge. The coming few months will determine the safety and security of Apple and Goldman Sach’s new venture in the FinTech sphere, and set precedent for the finance and tech industry to move forward.