Apple has been expanding its services business for a while now. Its services business is up 19% year-over-year for Q1 2019, as reported by Macrumors. Services are now20% of overall company revenues, notes Statistica.
Apple has now added its own credit card to its services offerings, called the Apple Card. The card lives on your iPhone and doesn't require a website to manage. Apple Card makes money through interest. There are zero fees, and its customers get from 1% to 3% cash back.
Apple doesn't own the full processing loop. Apple Card is backed by Goldman Sachs and processed by Mastercard. It will have a variable APR in the range of 13.24% to 24.24% based on creditworthiness.
Apple Card offers plenty of consumer features, including some not found on other credit cards. These include:
• See your spending in real-time, including locations.
• Cashback that's awarded daily.
• See how much interest you'll pay based on your total payment.
• Discover spending trends that can better help manage your finances.
• Text Apple Card customer support right from your phone.
• Payment reminder notification from phone.
• Due date is set at end of month.
• Fraud protection.
Consumers also receive a real credit card. The Apple Card is made from titanium and does not have a credit card number since it is locked away in the card's chip. The Apple logo, Goldman Sachs logo, and your name are etched into the card.
Since the Apple Card lives on your phone and there is no credit card number on the physical card, how do you give the number to a merchant over the phone or use it on websites? Apple Card lives in the Wallet app, which allows you to view credit card numbers. For apps and websites, a virtual credit card number is generated and auto-filled when using Safari.