Apple Inc will be launching a credit card with Goldman Sachs Group Inc this summer. It will be synched with iPhone users' Apple Wallet and can be used to buy Apple products at a discount.
Vice President of Apple Pay Jennifer Bailey spoke at an event at the iPhone maker's headquarters in Cupertino, California and said the new Apple Card service will work through the company's wallet app Apple Pay.
However, users of the card, which will be issued by Goldman Sachs Group Inc, will earn 2% cash back on all purchases made through the digital wallet or 3% cash back on Apple products.
Interestingly, there will also be a physical card, which will give users 1% cash back on purchases. The credit service will come with new features in the Apple Wallet.
They will aim to help consumers track their spending with a breakdown of monthly purchasing trends. The cash back rewards will be credited to Apple Pay users' accounts on a daily basis, and the card will not charge any international fees.
Credit card industry analysts said the rewards programs were not significantly different from what is presently available in the market, but that Apple's broad consumer reach could make it a major player.
Ted Rossman, an analyst at Creditcards.com noted that the rewards for Apple's card were less attractive than benefits Citigroup Inc offers with its Double Cash Card.
Apple Chief Executive Tim Cook said Apple Pay was on track to process 10 billion transactions this year and is accepted by 70% of merchants in the United States.
The Apple Card is first credit card to be offered by Goldman Sachs, which is best known as a Wall Street investment bank.
