Abu Dhabi, UAEFriday 20 September 2019

Apple Card available to US iPhone users with no public plan yet for other countries

A deal with Uber will give customers 3 per cent cash back on Uber and UberEats purchases

Jennifer Bailey, vice president of Apple Pay, speaks about the Apple Card at the Steve Jobs Theater during an event to announce new products in Cupertino, California in March. The Apple-branded credit card is designed primarily for mobile use. AP
Jennifer Bailey, vice president of Apple Pay, speaks about the Apple Card at the Steve Jobs Theater during an event to announce new products in Cupertino, California in March. The Apple-branded credit card is designed primarily for mobile use. AP

Apple on Tuesday made its credit card with Goldman Sachs available to all US customers but has not yet disclosed when or if it will be available outside its home market.

People with US iPhones running the latest software can apply for the Apple Card via the Wallet app, Apple said in a statement. The Cupertino, California-based technology giant also announced a deal with Uber that will give customers 3 per cent cash back on Uber and UberEats purchases.

Apple, which previously said only people shopping at Apple stores or buying its services would get 3 per cent cash back, said other merchants and apps will eventually offer the deal.

Through partnerships with Goldman Sachs and Mastercard, the technology giant is looking to entice customers with at least 2 per cent cash back on all purchases on the credit card through its Apple Pay service, no fees and an app to track spending.

Apple did not respond to The National's request for comment on when its credit card will be available outside the US. Goldman Sachs chief executive Richard Gnodde said the bank is actively exploring introducing the card in international markets when it was first announced in March but did not elaborate.

Apple Card will be a new revenue driver as the company ramps up its services offerings amid declining sales of its flagship product, the iPhone.

Gene Munster, managing partner with Loup Ventures, told Reuters that the card's adoption is likely to be low in the first year but it could generate about $1.4 billion (Dh5.1bn) of high-margin revenue by 2023.

That would add about 1.8 per cent to Apple's overall earnings and complement the much larger Apple Pay business for total payments revenue of $5.38bn by 2023.

Annette Zimmermann, vice president and analyst at Gartner, told The National when the credit card began its initial roll out earlier this month that it was impressive that Apple managed to line up partnerships with big names before launching Apple Card.

“It exemplifies very interesting business dynamics. Mastercard is obviously one of the competitors in this segment, so there must be some kind of strong value exchange between the two companies. Using Mastercard’s global network to let people pay is remarkable,” Ms Zimmermann said.

Updated: August 21, 2019 01:29 PM

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