By Elizabeth Dilts and Anna Irrera
NEW YORK (Reuters) ̵
The Apple Card will sync with the iPhone's Apple's Apple Wallet and work through its Apple Pay payment system, says Apple Bail Vice President Jennifer Bailey. She spoke in Cupertino, California, where the company also announced the launch of a streaming television service and an online gaming arcade.
Cardholders will earn 2 percent cash back on all purchases made using their phones or 3 percent cash back on Apple products.
The physical credit card will be made of titanium – laser etched with user names, but no numbers as a security feature. It will pay 1 percent cash back on purchase.
The card issued by Goldman Sachs Group Inc and wanting to use the Mastercard Inc network brings new features to the Apple Wallet to help users track their expenses with a Monthly Purchase Distribution.
Credit card industry analysts said the rewards programs were not significantly different from what is currently available in the market, but Apple's broad consumer reach could make it a major player.
"Frankly I'm a little underwhelmed," says Ted Rossman, an analyst at Creditcards.com. "This card will get many headlines, but the bark is bigger than its bite."
He noted that the rewards for Apple's cards were less attractive than benefits Citigroup Inc offers with its dual cash card. US Bank Altitude Reserve Visa Infinite card gives 3%. Pr. Dollar on mobile wallet expenses, worth 3 percent cash back or 4.5 percent from travel, he added.
Apple Pay is accepted by 70 percent of US merchants and will be available in more than 40 countries by the end of the year. New York, Chicago and Portland commuters, Oregon, could eventually use it to pay for public transport, Apple said.
Cash back rewards are credited daily to Apple Pay user accounts, Bailey said, and the card does not charge annual fees, international fees or fees. She did not provide specific information on the interest card holders will pay on balances.
Sara Rathner, credit card expert at Financial Product Comparison Site NerdWallet, said there are "many money back cards that offer similar benefits" but that the card would be useful for consumers who buy many Apple products and services .
Tim Devaney, free credit score app Credit Karma, said the rewards are competitive, but that's not what will differentiate the Apple Card. "The Apple card is consumer friendly," he said, noting features like a calculator that shows how much interest a consumer will have in paying a balance over time.
Apple did not say whether the new budget tool would include cash and credit balances from other accounts or if it would provide a sign up bonus.
The Apple card is Goldman's first credit card. The Wall Street investment bank has offered more products to consumers, including personal loans and savings accounts via Marcus & # 39; online bank.
Apple's Bailey said Goldman will never share or sell consumer data to third parties for marketing. She added that the card would have privacy, and Apple would not know what and where a purchase was made or how much it cost.
(Reporting by Elizabeth Dilts and Anna Irrera; Editing Meredith Mazzilli, Susan Thomas and Dan Grebler)