The Apple Card is just another spoke in the wheel toward a full digital payment world.
Last week, Apple Inc. announced its Apple Card, which boasts a MasterCard brand and is issued by Goldman Sachs Group Inc., will roll out this summer.
The physical card, which is made of titanium and contains a contact chip, is emblazon with a card verification code and an expiration date, and they are included in the Apple Wallet. Apple wants cardholders to use Apple Pay, its near-field communication-enabled mobile-payment service for card-not-present transactions.
Experts in the card industry believe this is the computer giant’s big push to increase digital payments for e-commerce. Those with Apple Cards will need to make contactless payments with Apple Pay, which can only be used in Apple’s Safari browser and in-app. Though some may still need a credit or debit card from another scheme to make other payments, the Apple Card is giving digital payments a real shove.
In Terms of Security, Apple’s Move Makes Sense
The beauty of Apple Card is that it helps eliminate the visibility and usage of personal information, which is always better for consumers, merchants, and issuers. However, the greater security, in this case, takes away from the usability.
Cardholders will access to the card’s CVV and expiration by viewing the wallet, making it cumbersome to make an online purchase with an Apple Card on a site that is not enable for Apple Pay.
A Big Fish in a Small Pond
Though this is a major move by Apple, its cards is only one of its kind in a large tank of other cards issued by banks and credit unions. So, while this may be Apple’s big push, only expect a certain type of customer to embrace what the computer giant is attempting to do. The people who will embrace the card are already diehard loyalists of their iPads and iPhones and spend much less time on browser-based activities.
Digital Authentication Will Be the Real Change
Relying on Apple Wallet won’t change how payment data is processed and stored for purchases. How a transaction is authenticated, how credentials are stored for future purchases, and how the user can access the data is what will change with the use of Apple Card.
It will require another form of digital authentication, such as facial recognition or fingerprinting, to use Apple Pay or applications that allow for stored credentials. This is important because it meets the multiple-layer digital authentication approach that the industry is striving to achieve.
Apple’s Strategy Is Ambitious
Apple Card’s lack of contactless antenna on the physical card speaks volumes. It is screaming that the computer powerhouse’s entire goal with Apple Card is to drive the use of Apple Pay. The Apple Card is merely there to accommodate purchases that don’t accept Apple Pay.
Experts just hope Apple’s ambitious doesn’t cloud people’s minds about NFC technology. Apple is giving the impression that NFC is only secure if it is used via a mobile wallet not cards, and that is simply not true. They are equally secure. What Apple’s move does drive home is that multiple levels of digital authentication provides the safest way to make purchases.
As Apple attempts to bring greater digital authentication in the industry, it likely will trigger others to emphasize it, as well. Any move in that direction is good for all players in the industry.
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