What's in your wallet? Apple wants you to add an Apple Card credit card, coming in summer
Apple had more than entertainment on its mind at its much-anticipated event Monday.
The iPhone maker separately announced a Mastercard credit card with a Daily Cash feature that adds a 2 percent rebate on purchases made through Apple Pay. The rebate climbs to 3 percent on purchases made directly through Apple, either in Apple Stores, the App Store or for Apple services.
There are no annual fees, late fees or international currency exchange fees. Apple claims low interest fees and no late fees.
The company is partnering with Goldman Sachs on the new card, which will be available this summer.
The card includes a variety of privacy and security features built in, notably that Apple doesn't know what you bought, where you bought it or how much you paid. And Apple says Goldman Sachs will never share your data to third parties for marketing or advertising purposes.
The sleek titanium card doesn't have a card number, security code or expiration date on it, but your name is etched into the front. It has a unique card number created and stored securely on your iPhone, Apple says.
Card holders can use the Wallet app on their iPhone to monitor weekly and monthly spending and see how long it will take to pay off a credit card balance based on different payment amounts.
“Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance," said Jennifer Bailey, Apple’s vice president of Apple Pay, in a statement. She debuted the card on stage during the event.
Apple's new credit card may not be the absolute best deal for consumers, says Ted Rossman, industry analyst at CreditCards.com. For instance, the Citi Double Cash card "is a very simple, easy-to-use 2% cash back card," he said. "And that’s on everything," not just Apple Pay purchases, Rossman said.
Additionally, he said if a consumer wanted to "maximize Apple Pay, the U.S. Bank Altitude Reserve Visa Infinite card gives 3 points per dollar on mobile wallet spending" or 3 percent cash back or 4.5 percent off travel. "That’s really interesting: U.S. Bank offers better Apple Pay rewards than Apple," Rossman said.
“Frankly, I’m underwhelmed. This card will get a lot of headlines, but its bark is greater than its bite," Rossman said. "People will sign up for it, but that will be mostly because they love Apple, not because this card is better than anything that already exists.”
While many people online quickly were enamored with the titanium card, some questioned why Apple partnered with a bank rather than creating its own.
Others lamented Goldman Sachs' history, which includes a $5 billion payout to settle deceptive mortgage practices before the financial meltdown.