Well, they might as well enter the credit card business. The Apple credit card was introduced yesterday. The card will be available this summer.
WalletHub wrote a thorough review of the Apple Card’s publicly available terms. Here a few highlights of WalletHub’s analysis below.
In general, you can only tell how good a card is by looking at the card members agreement. There you will find all of the fine print. Here is a summary of WalletHub's analysis.
Strong Apple Pay Rewards: The Apple Card is most rewarding when used through Apple Pay. Cardholders earn 3% back when buying Apple products using Apple Pay. Other Apple Pay purchases earn cardholders 2% back.
Average Physical-Card Rewards: Apple Card purchases made with the physical credit card, rather than via Apple Pay, earn just 1% back. The average cash rewards card gives 1.06% back on all purchases, according to WalletHub data. In contrast, the best rewards credit cards offer the equivalent of at least 2% back on all purchases.
No Fees: The Apple Card has no annual fee and no foreign transaction fee. The average credit card charges a $17.35 annual fee and a 1.50% foreign fee.
Promise of Low Rates: Apple says its “goal is to provide interest rates that are among the lowest in the industry.” But the devil is in the details when it comes to APRs, and given the Apple Card’s average rewards structure, consumers shouldn’t hold their breath.
Commentary: “The banks made a big mistake by not only supporting Apple Pay, but also paying Apple for every transaction. Now, Apple is pressing their advantage with the Apple Card, and banks will pay a heavy price unless the correct course quickly,” said WalletHub CEO Odysseas Papadimitriou. “This new offering is aimed directly at Millennials and could put Apple in the driver’s seat as the payments landscape becomes increasingly digital.” As with any credit card be careful - they lure you in with the marketing and stick it to you with the fine print.