Apple Inc. launches a credit card with Goldman Sachs this summer that can be used to monetize the purchase of Apple products, but analysts suggest that rewards do not stand out among rivals.
The Apple card will sync with the iPhone user's Apple Wallet and work through the Apple Pay payment system, says Jennifer Bailey, vice president of Apple Pay.
Cardholders 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 ̵
The card, which wants to use the Mastercard network, comes with new features in the Apple Wallet to help users track their expenses with a breakdown of monthly purchases.
Credit card industry analysts said the rewards programs were not significantly different from what is now available in the market, but Apple's broad consumer scope could make it an important player.
"Frankly, I'm a little underwhelmed," said Ted Rossman, an analyst at Creditcards.com. "This card will get many headlines, but the bark is bigger than its bite."
Rossman noted that the rewards for Apple's cards were less attractive than the benefits Citigroup offers with its dual cash card. US Bank Altitude Reserve Visa Infinite card gives 3 points per dollar on mobile wallet expenses, worth 3 percent cash back or 4.5 percent of 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, Ore., Could eventually use it to pay for public transport, Apple said.
Cash rewards will be credited to Apple Pay users' accounts daily, Bailey says, and the card will not charge annual fees, international fees or fees. She did not provide specific information on interest card holders wanting to pay on balances.
Sara Rathner, credit card specialist on financial product comparison site NerdWallet, said there are "many cash cards that offer similar benefits", but the Card will be convenient for consumers who buy many Apple products and services.
Tim Devaney, with free credit score credit credit Karma, said the rewards are competitive but not what sets the Apple card apart. "The Apple card is user-friendly," he said, and noted features as a calculator that shows how much interest a consumer will incur by paying a balance over time.
Apple did not say whether the new budgeting tool would include cash and credit balances from other accounts or whether it would provide a sign-up bonus.
The Apple card is Goldman's first credit card. The investment bank Wall Street has offered more products to consumers, including personal loans and savings accounts via Marcus online banking.
Apple's Bailey said Goldman will never share or sell consumer data to third-party marketing. She added that the card would have privacy features, and Apple didn't know what and where a purchase was made or how much it cost.