Apple Introduces Apple Card, Its Own Credit Card With Cashback and More

Apple Introduces Apple Card, Its Own Credit Card With Cashback and More

Apple said on Monday it will launch a credit card with Goldman Sachs Group this summer that can be used to earn cashback on the purchase of Apple products, but analysts suggest its rewards do not stand out among rivals. The Apple Card will sync with iPhone's users' Apple Wallet and work through its payment system Apple Pay, said Jennifer Bailey, vice president of Apple Pay. She spoke in Cupertino, California, where the company also announced the launch of a streaming television service and an online gaming arcade.

Cardholders will earn 2 percent cashback on all purchases made using their phones or 3 percent cashback on Apple products.

The physical credit card will be made of titanium - laser-etched with users' names but no numbers as a security feature. It will pay 1 percent cashback on purchases.

The Apple credit card, which will be issued by Goldman Sachs Group and will use the Mastercard network, will come with new features in the Apple Wallet to help users track their spending with a breakdown of monthly purchasing.

Credit card industry analysts said the rewards programs were not significantly different from what is currently available in the market, but that Apple's broad consumer reach could make it a major player.

He noted that the rewards for Apple's card were less attractive than benefits Citigroup offers with its Double Cash Card. The U.S. Bank Altitude Reserve Visa Infinite card gives 3 points per dollar on mobile wallet spending, worth 3 percent cashback or 4.5 percent off travel, he added.

Apple Pay is accepted by 70 percent of US merchants and will be available in more than 40 countries by the end of the year. Commuters in New York, Chicago and Portland, Oregon, will eventually be able to use it to pay for public transportation, Apple said.