Impact of Apple Card on Financial Technology

During the San Bernardino Terror Attack, one of the terrorists had used an iPhone and ironically the FBI could not open it. After weeks of haggling, the FBI was at a warpath with Apple - demanding their cooperation in unlocking the phone. THE FBI. COULD. NOT. OPEN. AN IPHONE. And they even filed a lawsuit. But Apple held its ground, it refused to help the FBI in this case, as they felt that it would set a bad precedent. Yes, the FBI finally managed to find a way into the phone, thankfully, but Apple's stubborn stance was noticed and it actually helped the brand - the users saw this as an insurmountable evidence to the fact that iPhone are secure. And that Apple will definitely not do anything to change that.

For a company that refused to help the FBI, Apple has not forayed into a sector where security and trust are the biggest emotional players - Finance. And how.

Apple Card is simplicity in itself and has already upturned so many norms and rules of the society and traditional banking giants. Launched in partnership with Mastercard and Goldman Sachs, Apple Card, will be available as a built-in feature within the Apple Wallet application on iPhone.

So what makes it so game-altering?
  • In 6 months, once the customers "opt-in" to use the Apple Card on their iPhones, they will be able to use the credit card IMMEDIATELY. Which is frankly a far cry from the traditional system where even if the customer signs up online, they still have to wait a mandatory period of time to start using the physical card.
  • It comes with a 2% cashback on all transactions delivered on a daily basis.
  • Biometric security authentication with Face ID and Touch ID, a unique card number is created on the iPhone and stored in the Apple security chip Secure Element.
  • A beautiful Titanium Card with no card number, CVV security code, expiration date or signature on the card - which means - security.

All this and more makes Apple Card a formidable foe in the financial industry - what does this mean to technology?

Technology Upgrade

Traditional companies that are playing catchup on the technological front are scrambling to make it work - in 6 months.

The need for a mobile based access that's actually user-friendly as opposed to the developer-friendly is here. With Apple, the pull has always been Simplicity and that's one element totally lacking from most of the banks even in this time and era.


Apple has established the fact that their devices and applications are as secure as possible. Starting with the app store to their Apple Pay, they have extremely strict guidelines for any app to be launched, the other banks have still some major catchup to do in terms of security.

Newfangled Technology

Banks have been using AI and ML in recent times, but Apple is already ahead. For example, take the Spending Breakdown in the olden style Credit Card Statement against the Apple Card. While many are debating color-coding for types of transactions to help customers "visually comprehend" the expenses, Apple is also offering categorization of payments and dividing them into classes such as Food and Drinks, Shopping and Entertainment PLUS using ML and Apple Maps to clearly label transactions with merchant names and locations. Simplicity Strikes Again.

This and more are the various ways in which technology is going to disrupt the Financial Industry - THANKS TO APPLE.