Apple launched its own credit card which is designed for the iPhone and it will be used to earn rewards on the purchase of Apple products. Users can sign up from their iPhone and can use it as Apple Pay in few minutes. For this year, this service will reach more than 10 billion transactions. Apple Pay will be available near around 40 countries, by the end of this year.
According to the report, in the United States, near about 70% of businesses accept the Apple Pay transactions. Apple Pay cardholders will earn 2% cashback on purchases by using their mobiles and 3% cashback on all Apple products.
This credit card service is the first card of Goldman Sachs Group and it will use the MasterCard network. It will come along with some interesting features to the Apple wallet to aid users to track their transactions with all the details of the monthly purchasing.
"Frankly I am a little bit underwhelmed, this credit card service will get a lot of features, but its bark is greater than its bite”, stated Ted Rossman, analyst (Creditcard.com).
Rossman also said that the cashback for Apple’s card was not that much attractive than benefits Citigroup offers with Double Cash Card. The United States Bank Altitude Reserve Visa Infinite credit card offers 3 points per Dollar on phone wallet spending, and 3% cashback for travel, he added.
Apple said that the rewards will be credited directly to the accounts of Apple Pay users. The credit card will not charge any annual fees, late fees or international fees. Apple did not reveal any specific information about the interest rate that credit card holders will pay on balances.
“There are a number of cash-back cards which offer the same benefits, but that the card will be convenient for customers who purchase maximum Apple products & services. Sara Rathner, credit card specialist (Nerd Wallet, financial product comparison site), stated.
Apple's Bailey said that the Goldman will never sell or share customer data to any third parties for marketing. The company added that, the credit card would have several privacy features.