Apple is reportedly looking to enter the financial services business by launching its own credit card. According to The Verge, the iPhone maker has partnered with Goldman Sachs to develop a new credit card. While neither company has released an official launch date, sources say it will likely be available next year.
The idea of an Apple credit card may sound unusual to consumers. After all, there are currently hundreds of credit cards already available, so why should consumers should Apple’s? The new Apple-branded card will likely be tied to the company’s mobile payment and online wallet service, Apple Pay. If true, this would allow Apple Pay users to pay for products and services even when they don’t have access to their smartphone.
Launched October 20, 2014, Apple Pay is a mobile payment service that’s available for the iPhone, iPad, Mac and Apple Watch. It uses near-field communication (NFC) technology to transmit payment information from the user’s smartphone to the vendor’s point-of-sale (POS) terminal.
Apple has worked vigorously to make Apple Pay a safe and secure service that doesn’t expose users’ financial information to prying eyes. The service supports two-factor authentication, for instance, which requires two methods of verification rather than just one. In addition to entering a PIN or passcode, a user may also elect a biometrics method of verification like Touch ID or Face ID.
Like other mobile payment solutions, including Google Pay, Apple Pay was initially touted as an easier and more convenient payment method than traditional methods like credit cards and cash. As long as a user has access to his or her iPhone, they could pay for products or services using Apple Pay. But some users still prefer physical payment methods, which is why Apple is releasing an Apple Pay credit card. With the Apple Pay credit card, users can pay for goods in person without needing their Apple device.
Apple will likely offer benefits to users of its Apple Pay credit card. For instance, it may offer discounts on apps and games purchased through the App Store, or it may offer concierge services at brick-and-mortar Apple Stores. Currently, however, details regarding the new credit card remain unknown.