“Not having a card number on the physical card, if the consumer chooses to get that, helps [with security] certainly because somebody can’t just write that down and take it,” Mastercard’s Craig Vosburg said on “Squawk Alley. “
Unlike standard credit cards, the Apple card doesn’t come with a 16-digit number and the company encourages users not to swipe for transactions.
Vosburg explained that this product is more secure because users get a one-time use number in the Wallet app. “The real key to the enhanced security here is happening behind the scenes where we’re tokenizing the card credentials.”
He added, “We’re taking the digital representation of that 16-digit number and scrambling [it] into a code that only we and Goldman Sachs can recognize. We know where it’s meant to be used. We know it’s meant to be used with that Apple device and if it shows up somewhere else, we know it’s been compromised and we can kill it.”
IPhone users can apply for the card through the Wallet app and start using it right away with Apple Pay on apps and in stores. The credit card can only be signed up for on an iPhone and the majority of transactions and interface take place on the phone. The main purpose of Apple’s latest product is to keep users in the Apple ecosystem and most importantly, to make it harder for people to switch over to Android.
According to Vosburg, the “digital first card” utilizes “Mastercard’s technology in conjunction with Apple and Goldman Sachs” to bring and create a “new kind of consumer experience.”
“It aligns with the way so many consumers are living their lives, in particular, consumers who identify closely with Apple’s brand and the Apple ecosystem,” he said. “We want to be able to have payment capabilities closely aligned with the way they are living their lives.”
Following the launch of Apple card, Apple shares rose more than 1%.