Tech giant Apple has announced its first entry into the FinTech space with its latest product, ‘Apple Card’.
The announcement was made at the California-based company’s latest event, where it also announced new subscription models for digital magazines, mobile games and television.
Following the success of app-based challenger banks such as Revolut and Monzo, Apple announced it too would begin to offer a banking service from within its existing Wallet app.
Apple’s existing ‘Apple Pay’ service, available in 85 per cent of UK retailers, allowed its users to import an existing card physical card to an iPhone handset and imitate the contactless capability.
Its new Apple Card service which will soon be available in the US, followed by a UK launch, provides the same feature with its own account.
It also offers many of the same features as existing app-based banks, including modern spending analytics, reduced fees and a novel physical card.
Echoing challenger bank Revolut’s existing ‘Revolut Metal’ account, which comes with a metal credit card, the accompanying Apple Card will be made of laser-etched titanium, though it will not be contactless-enabled.
The card will not have a number printed on the front, instead this number is accessible through its apps, a move which the company says improves security.
Apple has partnered with American investment banking giant Goldman Sachs and MasterCard to provide the banking services. It is the first consumer credit card that Goldman Sachs has issued.
In its biggest leap into new territory, Apple will also offer credit services.
The company has said it wants to lower the interest which its users pay to access credit service, and hopes to do this by showing real time interest rates on money borrowed.
While the international firm has said that the service has no fees, it has states that its variable APR ranges from 13.24 per cent to 24.24 per cent, based on creditworthiness, and in the fine-print of its promotional video stated that “late of missed payments will result in additional interest accumulating toward your balance”.
It will offer 3 per cent cash back on purchased at Apple, 2 per cent on all purchases using contactless payment, and 1 per cent when paying by the Apple Card.