Apple just introduced a new rewards credit card that's sure to be a game-changer for iPhone users

Apple

• On Monday, Apple announced that it is launching a credit card in partnership with Goldman Sachs.
• The rewards credit card offers 2% cash back when you use Apple Pay, and 3% cash back on purchases from Apple.
• You'll also earn 1% cash back on purchases made with the physical card.

At an event today at its Cupertino, California headquarters, Apple announced the next stage in the evolution of Apple Pay: a rumored Apple rewards credit card.

The card, issued by Goldman Sachs and simply called "Apple Card," will offer cash rewards and various features and integrations with Apple's Wallet and Apple Pay apps.

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The card earns "Daily Cash," Apple's version of cash back. Daily Cash is issued to your account in close to real-time, and added to your Apple Pay Cash balance. From there, you can spend it on purchases, transfer it, or send it to contacts.

The card earns 3% Daily Cash back on purchases made with Apple, 2% cash back on purchases made with Apple Pay, and 1% Daily Cash on purchases made with the physical card, or online without Apple Pay. It was not immediately clear if purchases made online through Apple Pay would qualify for the 2% back.

According to Apple Pay VP Jennifer Bailey, who presented at the event, the new card is "designed for iPhone." People can apply directly on the iPhone, and start using the digital card immediately upon approval. Cardholders can update information and review transactions through iMessage, and the card uses machine learning to recognize transactions.

The card runs on MasterCard's payment network, and will be available this summer.