New Apple Credit Card to Earn 2% Back and Offer Special Mobile Wallet Perks
More details of the upcoming Apple co-branded credit card have been revealed: It will feature cash back and special perks with the Apple Wallet app, the Wall Street Journal reports.
The final details of the rewards the card will offer still have to be hammered out. WSJ says that "cardholders will earn cash back of about 2% on most purchases and potentially more on Apple gadgets and services."
That's not a bad rate for a co-branded card and matches the rates of some of the other top cash-back cards, but it likely won't have anyone fleeing from their flexible rewards earning cards that offer much better returns when redeemed for travel. There's no word on if the card will carry an annual fee, but the current co-branded card issued by Barclays does not have a fee. It earns 3 points per dollar on Apple purchases, 2x points at restaurants and 1x points on everything else — with those points being worth 1 cent apiece and redeemable for Apple, iTunes and App Store gift cards. Barclays will stop issuing its Apple Card once the product is launched.
Apple thinks the card's main appeal will be its integration with the iPhone and the Apple Wallet app. It will offer more detailed, real-time tracking of spending and will send notifications to cardholders who may have deviated from their normal spending patterns or budgets. The features sound similar to what Mint and other personal money management apps feature.
"Executives have discussed borrowing visual cues from Apple's fitness-tracking app, where 'rings' close as users hit daily exercise targets, and sending users notifications about their spending habits," the WSJ writes.
The card will be a Mastercard and issued by Goldman Sachs. It will be the bank's first credit card and is part of its push into consumer products after a shift away from securities trading. Goldman also runs Marcus, an online-only consumer banking account.
The report says Apple and Goldman have no interest in competing with premium rewards cards offered by American Express and Chase, so it's likely we won't see anything groundbreaking from this card outside of the enhanced Apple Wallet integrations.
TPG reached out to Apple and Goldman Sachs but both declined to comment on the story.
Apple receives a small fee every time a user pays at a merchant with Apple Pay; it's likely it will receive a larger cut from these interchange fees when people are using its own co-branded cards. Apple has been looking at ways to diversify its revenue as iPhone sales slow, so it's possible we'll see new financial products from the company in addition to other improvements and promotions relating to the upcoming credit card.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.