NEW YORK: Apple Inc rolled out its virtual credit card on Tuesday, working with bank Goldman Sachs Group Inc on the new iPhone add-on that may help Apple diversify from device sales and build out the Wall Street bank’s new consumer business.
Apple announced the card in March, aiming to draw in iPhone owners by offering a card with 2 per cent cash back on purchases with the Apple Pay service, no fees, an app to manage related finances, and a focus on data privacy.
For Goldman, the issuing bank, the card builds on a foray into its Marcus consumer banking brand, started in 2015.
Apple said a limited number of consumers who expressed interest in the card will start to receive sign-up invitations on Tuesday.
The card is designed to work with the iPhone, where users sign up for the card and can start using it immediately if approved via the Apple Wallet app and Apple Pay system. Apple offers an option for a physical card made of titanium, but the physical card has no visible number. Instead, the card’s number is stored on a secure chip inside the iPhone, which generates virtual numbers for online or over-the-phone purchases requiring a number.
Apple has focused on privacy, saying that purchase information is stored on the user’s iPhone and that it cannot see the information. Goldman will not be allowed to use data for marketing purposes, even for selling other Goldman products. — Reuters
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