Apple Innovates on the Credit Card Concept with Biometric Security, Daily Cash Back

“A titanium physical card will also be available for shopping in stores, but the card won’t feature a card number, CVV, signature, or even an expiry date – all of that information will need to be accessed from the iPhone.”

The rumors were true: Among its other announcements this week, Apple has unveiled a new credit card developed in collaboration with Goldman Sachs and Mastercard.

As a matter of course, Apple is positioning its new offering as a distinct and innovative take on the credit card concept. And it really is different in one key respect: The card is primarily virtual, built right into the iPhone’s Apple Wallet app. This enables enhanced security, since the card number is stored in the iPhone’s Secure Element, and each purchase is authorized using Touch ID or Face ID together with a dynamically generated security code. Apple says it won’t ever see where a customer has shopped or what they bought, with that information stored on the device.

A titanium physical card will also be available for shopping in stores, but the card won’t feature a card number, CVV, signature, or even an expiry date – all of that information will need to be accessed from the iPhone.

The mobile-first approach also enables some handy functionality for users, with the Apple Card helping to illustrate spending data with color-coded infographics. And it will automatically provide two percent cash back on purchases each day, with three percent of purchases from Apple going back onto the Apple Card.

Together with Apple Pay, Apple Card is the latest signal that Apple is serious about getting into the payments market. And with no fees attached to the card, and cash back offered daily, it could make some inroads pretty quickly.