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Should you get an Apple Card? Here’s what you need to know

Should you get an Apple Card? Here’s what you need to know

  • 17.03.2025 15:47
  • 9to5mac.com
  • Keywords: Apple Card, Goldman Sachs

The Apple Card offers cashback rewards, no fees, and seamless integration with Apple services. It provides 0% interest financing for Apple products but may not be necessary if you prefer other credit card options.

Apple ProductsAAPLsentiment_satisfiedGS/PAsentiment_satisfied

Estimated market influence

Apple Inc.

Apple Inc.

Positivesentiment_satisfied
Analyst rating: Buy

Apple is the creator of Apple Card, a popular credit card among their users. They provide various benefits like Daily Cash and Monthly Installments.

Goldman Sachs

Positivesentiment_satisfied
Analyst rating: —

Goldman Sachs provides the financial backend for Apple Card, handling transactions and services related to the card.

Context

Analysis of Apple Card: Business Insights and Market Implications

Key Features and Benefits

  • Application and Management:

    • Can apply and manage directly through the Wallet app on iPhone.
    • No annual fee, no late fees, no over-limit fees, and no foreign transaction fees.

  • Rewards Program:

    • Earns "Daily Cash" rewards on purchases:
      • 3% cashback on Apple Store, App Store, and digital services (e.g., Apple Music, Apple TV+).
      • 2% cashback on Apple Pay transactions.
      • 1% cashback on all other purchases.
    • Exclusive feature: Daily Cash can be deposited into a savings account offering 3.90% interest.

  • Monthly Installments:

    • Offers zero-percent interest financing for Apple products through "Apple Card Monthly Installments."
    • Financing options vary by product (e.g., iPhone over 24 months, AirPods over 6 months).
    • Earns 3% Daily Cash on installment purchases immediately.

Market and Competitive Dynamics

  • Competitive Landscape:

    • Competes with other cashback cards from Chase, Citi, and Discover.
    • Unique integration with Apple ecosystem services (e.g., Apple Pay, Apple Cash).

  • Strategic Partnerships:

    • Backed by Goldman Sachs, which is considering exiting the partnership.

Customer Considerations

  • Credit Impact:

    • Soft credit check for approval.
    • No impact on credit score during application or use of Monthly Installments.

  • Use Cases:

    • Ideal for frequent Apple purchases and Apple Pay users.
    • Suitable for those who value seamless management through the Wallet app.

Long-Term Effects and Regulatory Implications

  • Potential changes in partnership with Goldman Sachs could affect service offerings.
  • Apple's focus on integrating financial services (e.g., Apple Cash, savings accounts) may influence broader market trends.

Conclusion

The Apple Card offers significant rewards and convenience for Apple users but may not be the best fit for all. Its integration with Apple’s ecosystem provides a competitive edge, though alternatives like Chase or Citi cards remain viable options.