iPhone users are already using Apple’s Wallet app, Apple Pay, and Apple Pay Cash — wouldn’t they like an Apple credit card, too? The Cupertino company and bank partner Goldman Sachs believe the answer is “yes,” so they’ve teamed up for Apple Card.
In addition to offering major rewards for users, the new payment solution promises to improve the credit card experience by offering a healthier approach to spending. The Wallet app will include a more transparent list of transactions, organized in an easy to read format, plus a more flexible way of making payments on outstanding balances.
Every time you spend with Apple Card, you get 2 percent cash back — a feature the company calls Daily Cash. Purchases directly from Apple come with 3 percent cash back. That could lift the company’s sales of its own products, providing a greater incentive to pay “full price” at Apple than seek discounted prices elsewhere.
Additionally, the card has no fees: no late fees, membership fees, or international fees, with the promise of unspecified but lower interest rates than competitors. The absence of late fees is jaw-dropping; whether it will be sustainable for the long term is yet to be seen.
Apple Card will be accepted by vendors who participate in MasterCard’s global payment network, and the banking side will be backed by Goldman Sachs. While the card will be digital and connected to an iPhone, there will also be a physical card made from titanium that can be used in stores; purchases made with the physical card are only eligible for 1 percent Daily Cash.