Apple Inc. (NASDAQ: AAPL) CEO Tim Cook took the stage at Steve Jobs Theater on Monday to announce the Company’s latest innovation: Apple Card. The Company is partnering with Goldman Sachs to make its own credit card available this summer.
Users can sign up through any iOS device and get access to the card in the Wallet app, similar to Apple Pay. An option for a minimalistic physical card is also available. The titanium card is designed just with your name and the Apple logo- no card number or other information.
The Apple Card pays 2% in cash back on Apple Pay transactions, 3% on Apple product purchases, and 1% on purchases made with the physical card. Every transaction requires a fingerprint or face-ID confirmation. Apple also said for privacy reasons it doesn’t track where payments are made and for how much.
The Company said its credit card aims to help users spot spending habits. Weekly and monthly spending totals are laid out in the Wallet app and purchases will be grouped in color-coded categories. For instance, orange would correspond to food and green to entertainment.
The Company claims Apple Card is the first credit card that actually encourages you to pay less interest. "Even if you miss a payment, we won’t charge you a penalty rate like most banks do. Our goal is to make it easier for you to pay down your balance, not harder” said Apple executive Jennifer Bailey. The card will also have no fees of any kind: No late fees, international fees or annual fees.