Apple Inc. launches a Goldman Sachs credit card this summer to help you earn cash when you buy Apple products. However, analysts believe their rewards will not stand out among competitors Jennifer Bailey, vice president of Apple Pay.
Cardholders earn 2 percent cashback on all purchases made over their phone, or 3 percent cashback on Apple products.
The physical credit card is made of titanium ̵
The card that will use the Mastercard network will be equipped with new features in the Apple Wallet that allow users to track their spend with a breakdown of their monthly purchases.
Credit card industry analysts said the rewards programs were not significantly different from what is currently available in the market, but Apple's broad reach could make it a major player.
"To be honest, I'm a little under-challenged," said Ted Rossman, an analyst at. "This card will get a lot of headlines, but its bark is bigger than its bite."
Rossman noted that the rewards for Apple's card were less attractive than the benefits offered by Citigroup with its Double Cash Card. The US Bank Altitude Reserve Visa Infinite Card gives 3 points per dollar for Mobile Wallet spending worth 3 percent cashback or 4.5 percent of travel.
Apple Pay is accepted by 70 percent of US retailers and is available in the US by the end of the year more than 40 countries. Apple will be able to pay commuters to public transport in New York, Chicago and Portland, Oregon.
Cash Back rewards are credited to Apple Pay users' accounts on a daily basis, Bailey said, and the card does not charge annual, international, or late fees. She did not give exact information about the interest rate of cardholders.
Sara Rathner, credit card specialist at NerdWallet, a financial product comparison, said there are "many cash back cards offering similar benefits," but that's the card that would be convenient for consumers buying many Apple products and services ,
Tim Devaney, Credit Karma's free credit score app, said the rewards are competitive but would not distinguish the Apple card. "The Apple card is consumer-friendly," he said, identifying features like a calculator that shows how much interest a consumer is attracted to by paying a balance over time.
Apple did not say whether the new budgeting tool would contain money and other account balances, even if it had a sign-up bonus.
The Apple Card is Goldman's first credit card. The Wall Street investment bank has offered more consumer staples through its online bank Marcus, including personal loans and savings accounts.
Bailey of Apple said Goldman will never give or sell consumer information to third parties for marketing purposes. She added that the card would have privacy features, and Apple would not know what and where a purchase was made and how much it cost.