AppleCard at Five: US-Exclusive, Future Uncertain

AppleCard at Five: US-Exclusive, Future UncertainOn August 20, 2019, AppleCard was launched, marking Apple's foray into the financial sector. This credit card, a collaboration between Apple and Goldman Sachs, is the only credit card under the Apple brand and represents Apple's first venture into financial services

AppleCard at Five: US-Exclusive, Future Uncertain

On August 20, 2019, AppleCard was launched, marking Apple's foray into the financial sector. This credit card, a collaboration between Apple and Goldman Sachs, is the only credit card under the Apple brand and represents Apple's first venture into financial services. However, five years later, AppleCard remains exclusive to the US market and has not expanded to other countries.

Initially, Apple CEO Tim Cook had expressed interest in expanding AppleCard globally. However, differing regulations worldwide have slowed down this goal. Rumors circulated about Apple exploring AppleCard opportunities in Europe, including trademark registrations. However, no partnerships materialized.

The future of AppleCard is further shrouded in uncertainty as Apple's partnership with Goldman Sachs nears its end. In 2025, Apple plans to discontinue its partnership with Goldman Sachs and seek a new AppleCard provider in the US.

Apple and Goldman Sachs' AppleCard journey has not been without its challenges. Customer service issues and controversies, including long wait times for withdrawals from Apple Savings Accounts, have led to numerous customer complaints and even investigations by the Consumer Financial Protection Bureau. These negative incidents have strained the relationship between Goldman Sachs and Apple. Currently, Goldman Sachs plans to exit the consumer banking business.

Despite the controversies, AppleCard boasts unique advantages. Features like no annual fee, no foreign transaction fees, no late payment fees or over-limit fees, have attracted many users. AppleCard's seamless integration with the Wallet app allows users to easily track their spending. Apple also offers 1% cash back on all purchases, 2% cash back on Apple Pay purchases, and 3% cash back on Apple Pay purchases at the Apple Store. This "Daily Cash" reward, credited to users daily, is a key selling point for AppleCard.

However, Apple remains silent on the future of AppleCard's expansion to other countries, and there are no indications about whether such plans are still in place. Five years on, AppleCard remains confined to the US market, and its future path remains to be seen.