August 20, 2019: Apple Card reaches U.S. consumers for the first time. The titanium credit card gives a new option for payments when Apple Pay isn’t available.
Statements and payments are handled through the iPhone Wallet app, and the card is “designed to help customers lead a healthier financial life,” according to Apple. Surveys show the card soon becomes beloved.
Apple Card offers a consumer-friendly experience
No one seemed surprised when Apple Card was preannounced in March 2019. A credit card might seem a stretch for an ordinary computer-maker, but Apple Pay had launched in 2014 and was very popular so the company already offered financial services. Besides, the card serves as a companion to Apple Pay to be used in stores and restaurants that don’t accept wireless payments.
And it’s no ordinary card. The Cult of Mac review in 2019 called it “as friendly as a credit card can be.” The iPhone’s Wallet app clearly lists all transactions made with the card. And users pay no annual fees — the only cost is interest, and that can be avoided by paying off the balance each month.
Customers clearly love it. For the fourth year in a row, the J.D. Power U.S. Credit Card Satisfaction Study recently named Apple Card No. 1 in customer satisfaction in its category.
No ordinary credit card
Apple’s is a MasterCard, and has two card numbers associated with it. A primary one, and second for online purchases. If the second number is stolen by hackers it can be easily deactivated and switched to a new number without needing to change cards.
As with other credit cards, Apple’s offers cashback rewards. Most transactions pay 1%, while buying anything from the Mac-maker itself bumps that up to 3%. Payments almost immediately go into users’ Apple Cash totals.
A difference from many traditional cards is that this one is entirely digital. There’s no option to have a monthly statement on paper mailed to the card holder, nor can the balance be paid off with a physical check.
Even the card itself is a standout feature. Rather than cheap plastic, shoppers get to hand over a slab of titanium painted white. The card number isn’t written anywhere on the card so it can’t be easily copied. A magnetic strip on the back is ready for legacy payment systems.
A struggle for Goldman Sachs
While there’s plenty for consumers to love about Apple Card, the years since the card launched have been hard on Goldman Sachs, the bank that backs the financial instrument. Reports indicate it’s lost at least $1 billion dollars on the deal, and the bank now wants out.
The iPhone-maker reportedly pushed Goldman Sachs to accept near all applicants, increasing defaults. And Apple requires all card holders to be billed at the same time: the end of every month, not staggered through the month, so Goldman Sachs’ customer service department is flooded with calls one week and then idle the remaining three weeks.
Apply for Apple Card
To apply for an Apple Card, open the Wallet app on your iPhone and tap the Add button. Select Apple Card, then tap Continue. Fill out the application and submit it. Or the process can also be done on the web.
But note, Apple’s credit card is available only in the United States. The company never explains why, but one theory hinges on the limits many countries place on credit card interchange fees. These fees pay for the cash back rewards offered by the card, but the European Union cap on these at 0.3% makes Apple’s 1% cash back impossible. Perhaps Cupertino won’t release a stripped-down version of the card in those countries.
