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 Example of physical Apple Card | |
| Location | United States |
|---|---|
| Launched | August 20, 2019; 5 years ago (2019-08-20) |
| Technology | |
| Operator |
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| Website | applecard |
Apple Card is acredit card created byApple Inc. and issued byGoldman Sachs, designed primarily to be used withApple Pay on an Apple device such as aniPhone,iPad,Apple Watch, orMac.[1][2] Apple Card is available only in theUnited States, with 12 million cardholders as of early 2024.[3][4][5]
On August 6, 2019, invitations to an early preview started being sent to randomly selected users who had previously signed up for email notifications ahead of Apple Card's official launch.[6] It was released in the United States on August 20, 2019.[7] Additional cardholders andjoint accounts were not supported at its launch.[8]
The card features a number of consumer-friendly features including no fees, software that encourages users to avoid debt or pay it down quickly, the industry's lowest interest rate range for comparable cards, and a mandate to approve as many iPhone users as possible. These features are seen as being risky for a bank to take on, and led other banks with established consumer credit card operations includingApple's long time partnerBarclays, along withCitigroup,JPMorgan Chase andSynchrony, to turn down Apple's proposal.[9][10] Goldman Sachs defended the terms of the deal saying they were "thrilled" with the partnership and seeking "to disrupt consumer finance by putting the customer first."[9]
Apple Card was announced at anApple Special Event on March 25, 2019. Unlike previous special events which have historically served as platforms to announce upcoming hardware, this event focused on new internet software and services. Other services announced at the event includeApple TV+,Apple News+, andApple Arcade.[11][12]
On April 20, 2021, Apple announced that it would be introducingjoint accounts and additional cardholders. These features have been introduced under the brandApple Card Family. Individuals 18 years and older can be co-owners of the account, while individuals 13 years and older can be additional cardholders. Up to five individuals may be additional cardholders or co-owners.[13]
In January 2023, Bloomberg reported that Goldman Sachs suffered $1 billion in losses because of the card.[14]
On April 17, 2023, Apple began offering a high-yieldsavings account backed by Goldman Sachs to Apple Card users.[15]TheWall Street Journal reported in June 2023 that Goldman Sachs had entered into discussions withAmerican Express to explore the possibility that American Express might take over the partnership, replacing Goldman.[16]
Users can apply for an Apple Card directly from within theWallet app.[17][18] Upon approval, a digital Apple Card is made available immediately on all of the user's devices. Users also can order aphysical card for use at locations that do not accept contactless payments.[19]
The physical card does not display numbers on the front; instead, users receive a 16-digit virtual card number for websites and apps that do not acceptApple Pay.[20] Apple Card details are accessible in the user'siCloud Keychain and can be auto-filled into online forms.[21]
Apple has designed atitanium Apple Card for shopping at locations where Apple Paycontactless payment is not accepted.[22] The logos on the card are engraved, and the cardholder's name is laser-etched onto the card.[23][24] The card has nocard number,CVVsecurity code, expiration date, orsignature printed on the card.[22]
On delivery, users with theiPhone XS and above can activate the physical card by moving their phone near aNFC tag concealed within the card's packaging.[25] Users with aniPhone X or earlier need to open the Wallet app before tapping the phone against the card.[26]
Regular purchases made using thephysical card earn 1%, purchases made with Apple Pay earn 2%, and purchases atApple Stores and selected partners earn 3%. Cashback on eligible purchases is deposited into the customer'sApple Cash account, or deposited in the customer's Apple Card Savings Account, or applied as a statement credit.[27][28][29]
Apple Card does not chargelate,foreign transaction,returned payment, or annualcredit card fees, but it does generateinterest fees when carrying a balance andinterchange fees charged to thevendor.[30][18]
Launched on April 17, 2023, it allows Apple Card owners and co-owners to open a 4.15% savings account to deposit their Daily Cash,[31] with no fees and no minimum balance.[32]
The Wallet app collates Apple Card transactions by category and provides weekly and monthly activity summaries.[22]Apple Maps is used to provide a colour-coded category, map location, and contact details for the merchant (where available).[33]
Apple added support for users to give third-party budgeting apps access to transaction data for budget management iniOS 17.4[34]
A unique card number is created for each device and is stored in asecure element which is used by Apple Pay to handle transactions and on-device cryptographic functions. Each transaction uses its own one-time dynamic security code and is authorized withFace ID,Touch ID,[35] or passcode.[36]
As with Apple Cash, transaction history for Apple Card is stored on and synced across devices usingiCloud and encrypted such that only the authorized account holder can view it.[37]Two-factor authentication must be enabled on the user'sApple ID account in order to apply for Apple Card.[8][38]
For Apple Card's initial US launch,Goldman Sachs assumed the role of theissuing bank,[39][2][38][40][41] whileMastercard served as thepayment network.[42]
In March 2020, about 3.1 million Americans held the Apple Card. That number grew to 6.7 million cardholders as of early 2022 and to 12 million by early 2024.[4] Six in ten Apple Card users use it as their primary credit card.[43]
On October 1, 2019,MarketWatch published an article stating that Goldman Sachs is not reporting payments to the credit reporting agencies.[44] The article suggests that Apple and Goldman Sachs rushed development of the card, and that the companies would fix the issue over time.
On November 7, 2019,David Heinemeier Hansson posted onTwitter that he was given 20 times the credit limit than was offered to his wife despite her having a better credit score. He accused Goldman Sachs ofgender discrimination by usingalgorithms to determine a person's credit limit.[45] Apple's co-founderSteve Wozniak also tweeted that he received ten times the credit limit that his wife was offered.[46] In response to Hansson's tweets, theNew York State Department of Financial Services launched an investigation into Goldman Sachs's practices.[45]
On March 23, 2021, the New York State Department of Financial Services issued a report summarizing its findings after investigating consumer complaints about the Apple Card. The investigation, which included a review of several thousand pages of records and written responses from Goldman Sachs Bank and Apple, interviews of witnesses and Apple Card applicants, and analysis of underwriting data for approximately 400,000 New York State applicants for the Apple Card, did not produce evidence of unlawful discrimination against applicants under fair lending law.[47]
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