Apple is launching a credit card that will be integrated into its mobile wallet and promises to help customers lead a "healthier financial life".

Available in the US this summer, the titanium Apple Card is a built into the Apple Wallet app on iPhones and offers a simple application process, no fees, financial management tools and privacy controls.

The tech giant has teamed up with Mastercard and Goldman Sachs for the new venture, which has no annual, late, international or over-the-limit fees, with interest rates "among the lowest in the industry".

Using Apple Maps and machine learning technology, transactions will be labelled with merchant names and locations, with purchases automatically totaled and organised into color-coded categories to enrich weekly and monthly spending summaries.

In terms of security, a unique card number is created on the iPhone’s Secure Element, a special security chip used by Apple Pay. Every purchase is authorized with Face ID, or Touch ID and a one-time dynamic security code.

Card users will also be part of a rewards programme, receiving a percentage of every purchase amount back as Daily Cash, which is added to the card each day and can be used for Apple Pay purchases, added to the Apple Card balance or send via Messages.

Jennifer Bailey vice president of Apple Pay, commented: “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance.”

Commenting on the announcement, Crealogix commercial director Jo Howes said that the move comes as no great surprise, as Apple is unburdened by legacy code or the cost of maintaining physical branches.

“However, unlike FinTech startups, Apple can deploy significant financial and technical resources from the very start and tap into an enormous existing customer base,” she stated. “Banks need to be wary of other major tech giants following suit, and it would not be surprising if Amazon were the next tech giant to enter the banking market.

“However, established banks have an advantage over these tech giants as they are already widely trusted and sustainable, something most digital challengers still need to prove to investors, customers, and regulators,” Howes added.

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