As Apple makes a broader push to expand its services business, the technology company has invited certain customers to apply for the Apple Card. The card is in partnership with Goldman Sachs, and Apple CEO Tim Cook said during the company’s third quarter earnings call that it would be released in August, CNBC reported.
Apple is looking to bolster revenues as sales of iPhones slow, while the card is an opportunity for Goldman Sachs to grow its reach into retail banking. And, for the new credit card, Mastercard will provide the payment network.
Clients who received access Tuesday (Aug. 6) were among the customers who applied for notification at the time the card first became available. The card will be released to the wider public later in the month, when clients will have the ability to apply for it in the iPhone wallet app.
With the card, users will receive cash back in lieu of reward points via a system that is tiered. Services or goods that are bought directly from Apple, such as its online store, retail stores, Apple music and iTunes, will come with 3 percent cash back. On the other hand, purchases through Apple Pay will get 2 percent. Other purchases will come with 1 percent daily cash back.
According to the Goldman Sachs customer agreement for the card, as cited by the outlet, the Apple Card doesn’t have annual, penalty, transaction or other fees. At the same time, it was noted that variable APRs will run from 13.24 percent to 24.42 percent.
Ahead of the launch of the Apple Card, Goldman Sachs said in the customer agreement it will not allow the purchase of digital currencies. Beyond forbidding the purchase of crypto, the agreement also reportedly indicates the card cannot be used to purchase cash advances or cash equivalents that include casino gaming chips, lottery tickets or race track wagers.