The Apple Card, which pushes payments deeper into the digital sphere, will become
banks, issuers, and card networks worst nightmare.
When consumers use their smartphones to make a purchase with the new Apple Card, the person will receive a real-time push notification. What’s unique about this card is that the entire transaction occurs in the digital wallet. Also, this type of feature helps build customer loyalty and strengthen the trust between consumers and providers.
Details About the Card
Apple’s card, which will be branded by Mastercard and issued by Goldman Sachs, will be available sometime this summer. No verification code and expiration date will be shown on the actual card, but all of that information will be secured in Apple Wallet. The card contains a contact chip that can be used to make contactless transaction. The tech giant wants cardholders to use Apple Pay for purchases.
The lack of sensitive information on the card also will be game-changer in terms of security. Having the sensitive data stored in Apple Wallet won’t change how payment data is processed and stored for transactions but the approach to authenticate the transaction will change. Transactions will need to be authenticated with additional tools, such as biometrics or fingerprints. This provides an extra level of security that everyone in the payment’s industry should be applauding and move toward as a goal.
What Apple’s Move Does to the Others
With every innovation, Apple has been able to tap into those important card functionalities that consumers are longing to see in their banks.
Now, issuers and banks will be under pressure to at least catch up to Apple’s contactless payment movement. If they want to compete, card issuers will need to up their games in terms of the mobile interactions they have with their cardholders. They will need to create complete user experiences that get consumers interested, talking, and coming back for more.
It also will force issuers, the big and the small, to become more open and honest about their pricing.
What the World At-Large Thinks
Experts believe Apple’s goal is to drive electronic payments, specifically through Apple Pay. The card just provides a way for people to continue to use an Apple product in places where Apple Pay isn’t accepted. Though many retailers accept it as a form of payment, many in the U.S. still don’t.
While other countries, like China, have jumped into the adoption of contactless payments, the U.S. for the most part has just waded in the pool. Though many advocate for a cashless society in this nation, it likely will take something, like Apple Card, to get it propelling at a swifter pace.
Getting consumers to use a card through a digital wallet makes for a smoother transition. Once users completely understand that using a contactless card is very similar to using a digital wallet on its own, there will be a shift toward greater adoption of the payment method. How quick it will get there is anyone’s guess.
What is known is that once it catches on, other networks and issuers better be ready to compete. Giving consumers what they want will always trump anything else.
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