Lisa Eadicicco/Business Insider
- Apple is launching its new credit card, the Apple Card, this month after announcing the card in March.
- The card lives entirely on your iPhone in Apple's Wallet app, where you can easily see how you're spending your money, pay your balance, and more.
- There's also a physical titanium card for instances in which you are unable to use your phone to make a purchase.
- There are benefits and drawbacks that come with having a credit card that's so dependent on your phone. If you lose access to your phone, for example, the process of paying your balance and locking your card isn't as seamless as it would be on competing cards.
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"Our vision is to replace this," Apple CEO Tim Cook said in September 2014 alongside an image of a wallet. He was unveiling Apple Pay that day, Apple's mobile payment system that makes it possible to pay for goods and services just by holding your iPhone near the credit card reader at checkout.
While Apple Pay has certainly come a long way in recent years since its 2014 debut, it wouldn't be until nearly five years later that Apple would make its next major step in replacing the traditional wallet. Apple Card, which the company announced in March, has started rolling out to select users in August, and Apple is planning a broader rollout for later this month.
Transform talent with learning that worksCapability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More The new credit card lives entirely in your iPhone's Wallet app, allowing you to make purchases, view your transactions, and pay your balance directly from your mobile device. The company also offers a physical card made of titanium that you can order through the app for times when you can't or don't want to pay with your iPhone.
When it comes to perks and benefits, the Apple Card offers 3% back in the form of Daily Cash whenever you make a purchase from Apple, whether it be from the Apple Store, iTunes, App Store, or subscriptions like Apple Music or iCloud. You get 2% back whenever you make a purchase using Apple Pay, and 1% when you use the physical Apple Card. There are also no fees for the Apple Card, including international or over-the-limit fees.
Read more: Here are all the new products Apple is expected to launch by the end of the year
The Wallet app is also designed to make it as easy as possible to pay off your balance and see where you're spending your money. The Apple Card's privacy-oriented features also make it a compelling option in an era when data breaches are becoming increasingly common. Unlike other cards, Apple's physical credit card doesn't have any numbers on it whatsoever, reducing the chances of a thief swiping your credit card number and security code.
But like many Apple products, you only get the most out of it if you spend all or most of your time in Apple's ecosystem. And its cashback rewards aren't as generous as some other competing credit cards.
Here's a closer look at what it's been like to use the Apple Card.