Contactless Payment: Cardholders can Now Open a Savings Account with Apple

Legal Informer: Contactless Payment - Cardholders can Now Open a Savings Account with Apple

The method of secure payment using gadgets with radio-frequency identification or near-field communication is known as contactless payment. To establish minimum standards and requirements for the operations of contactless payments in Nigeria and to promote a standardised, dependable, and robust payment system, the CBN recently released the Draft Guidelines on Contactless Payment in Nigeria (the Draft Guidelines). Users of Apple’s co-branded credit card with Goldman Sachs now have access to a new feature, linked savings account with a 4.15% annual percentage interest. The Wallet app makes it simple for cardholders to manage their accounts, and there are no fees, minimum deposits, or balance limitations. Customers can deposit money from their Apple Cash accounts or link a bank account. This is Apple’s most recent foray into the financial services industry, following initiatives like Apple Pay and Apple Cash that were a success.

Those using the Apple card can put their daily cash-back rewards into a savings account offered by Goldman Sachs group inc. Gs, +0.82% which has a 4.15% annual percentage yield. There are no fees, minimum deposits, or balance requirements for the account, which users can manage through Apple’s APPL, +0.01% Wallet app. The business has made suggestions about further financial industry growth, including brand-new device financing possibilities. Although the buy-now￾pay-later program’s distribution has taken longer than expected, Apple cardholders will be happy to learn about this new savings account. 

The most successful of those endeavours has been apple pay, which got off to a slow start but found its footing during the pandemic, as consumers embraced contactless payments and more businesses moved to accept the payment option. After users set up the savings account, future daily cash rewards will automatically go there, though cardholders can switch up the rewards destination. Users can also hold additional funds in the savings account by linking to a bank account or depositing from their Apple cash balances. When the company announced its apple pay later BNPL offering, it disclosed that it would be taking on lending functions itself through an inhouse finance unit, and Apple is thought to be interested in diving deeper into financial services, including potential new financing options for iPhones and other devices. But the BNPL service has rolled out more slowly than initially anticipated, perhaps signalling the difficulties of the company’s ambitions in the financial field.

This is a welcome development in the payment system. The contactless payments guidelines have already been provided for in Nigeria by the CBN through its Payments System Management Department in October 2022. Hence, it would be meritorious for the fintech sector when it becomes accessible to its Nigerian users.

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