Apple says the goal of Apple Card is to “transform the entire credit card experience by simplifying the application process, eliminating fees, encouraging customers to pay less interest and providing a new level of privacy and security.”
An unstated goal of Apple Card is to encourage iPhone customers to use the mobile Apple Pay service.
While Apple Pay is a dominant mobile payment platform in the US, less than a third of iPhone owners have ever used it more than once.
With deep iPhone and Apple Wallet integration, an easy-to-understand cash back program, and an undeniable cool factor, Apple Cash will almost certainly be uge hit for Apple.
A “credit card designed for iPhone”
Apple Card bridges the virtual and real worlds. It’s built into the Apple Wallet app on , offering a familiar experience with Apple Pay.
Customers apply for Apple Card in the Wallet app on iPhone. Real-time transactions and balances are tracked in the Wallet app. And Support is available 24/7 via test from Messages.
Includes a minimalist titanium credit card
Apple has created a titanium Apple Card for use at locations that don’t accept Apple Pay. Mastercard is Card’s payments partner.
With no card number, CVV security code, expiration date or signature on the card, the physical Apple Card will certainly look like an Apple product. (Apple says taking this information off the card makes it “more secure than any other physical credit card.”)
Apple clearly prefers customers use Apple Card through Apple Pay vs the physical card, as noted below.
Points are out, Daily Cash is in
Instead of traditional credit card points and rewards, Apple Card users will receive a percentage of every purchase in the form of “Daily Cash.” Apple calls it “a clearer and more compelling rewards program than other credit cards.”
- Every time Apple Card owners pay with Apple Pay from their iPhone, they receive 2 percent Daily Cash.
- Apple Card owners will get 1 percent back on purchases made with their physical Apple Card.
- Customers get 3 percent Daily Cash on all purchases made directly with Apple, including at Apple Stores, on the App Store and for Apple services.
Daily Cash is added to Apple Cash card each day and can be used right away for purchases using Apple Pay, to put toward their Apple Card balance or send to friends and family in Messages.
How Does Daily Cash Compare to other credit cards?
Several cards match or exceed Apple Card’s 1 – 2 percent cash back. Wirecutter reviewed 41 cash-back cards and found that cash-back cards fall into three main categories, defined by the rate of cash back that you’ll earn and the credit you need to qualify for them:
- 2% cash back: the standard rate for very good to excellent credit (a credit score of over 740)
- 3.71% cash back: the best rate they found (but with substantial requirements)
- 1.33% cash back: a solid rate if you’re (re)building credit
To see all the cards they reviewed and the top picks, click here.
Update: Wirecutter has created a post reviewing Apple Card benefits and comparing it to other leading cards. In sum: “so-so rewards but a strong focus on debt management.”
Apple Card gives customers real-time views of their latest transactions and balance right in Wallet, and Apple Card support is available 24/7 by sending a text from Messages.
- Apple Card uses Apple Maps to label transactions with merchant names and locations.
- Purchases are automatically totaled and organized by color-coded categories.
- Apple Card provides weekly and monthly spending summaries.
- Apple Card shows a range of payment options and calculates the interest cost on different payment amounts in real time.
- As a way to pay less interest, Apple Card will also suggest paying a bit more every month and offers the flexibility to schedule more frequent payments.
Privacy and security
- A unique card number is created on iPhone for Apple Card and stored in the device’s Secure Element, the security chip used by Apple Pay.
- Every purchase is authorized with Face ID or Touch ID and a one-time unique dynamic security code.
- All of the spending tracking and other information is stored directly on the device, not Apple’s servers.
- The security and privacy architecture created for Apple Card means Apple doesn’t know where a customer shopped, what they bought or how much they paid.
“Apple doesn’t know what you bought, where you bought it, and how much you paid for it.”Jennifer Bailey, VP of Apple Pay
Apple Card Fees
Apple says there are no annual, late, international or over-the-limit fees associated with Apple Card.
Additionally, Apple Card’s goal “is to provide interest rates that are among the lowest in the industry and if a customer misses a payment, they will not be charged a penalty rate.
APR rates will range from 13.24 percent to 24.24 percent based on credit.
Goldman Sachs + Apple
Goldman Sachs is supporting the launch of Apple Pay. Tiller supports financial feed of Goldman Sachs feeds into Google Sheets and Excel.
How to Get It
Apple Card will be available this summer. Customers can sign up for Apple Card in the Wallet app on their iPhone and start using it with Apple Pay right away in stores, in apps or online worldwide.