NEW YORK - Apple Inc said on Monday it will launch a credit card with Goldman Sachs Group Inc this summer that will be synched with iPhone users' Apple Wallet and can be used to buy Apple products at a discount.
Speaking at an event at the iPhone maker's headquarters in Cupertino, California, Vice President for Apple Pay Jennifer Bailey said the new Apple Card service will work through the company's wallet app Apple Pay.
Users of the card, which will be issued by Goldman Sachs Group Inc, will earn 2 percent cash back on all purchases made through the digital wallet or 3 percent cash back on Apple products.
There will also be a physical card, which will give users 1 percent cash back on purchases.
The credit service will come with new features in the Apple Wallet aimed at helping consumers track their spending with a breakdown of monthly purchasing trends.
Cash back rewards will be credited to Apple Pay users' accounts on a daily basis, Bailey said, and the card will not charge any international fees.
Credit card industry analysts said the rewards programs were not significantly different from what is currently available in the market, but that Apple's broad consumer reach could make it a major player.
"Frankly I am bit underwhelmed," said Ted Rossman, an analyst at Creditcards.com.
He noted that the rewards for Apple's card were less attractive than benefits Citigroup Inc offers with its Double Cash Card.
Speaking at the event, Apple Chief Executive Tim Cook said Apple Pay was on track to process 10 billion transactions this year and is accepted by 70 percent of merchants in the United States.
The Apple Card is first credit card to be offered by Goldman Sachs, which is best known as a Wall Street investment bank.
Goldman has been seeking to expand its consumer-focused products, and offers personal loans and savings accounts through its online bank Marcus. Marcus has grown quickly since its 2016 launch, and now has $36 billion in deposits in the United States and U.K. and $5 billion in consumer loans.
(Reporting By Elizabeth Dilts and Anna Irrera; Editing by Meredith Mazzilli) ((elizabeth.dilts@thomsonreuters.com; (646) 223-5063; Reuters Messaging: elizabeth.dilts.thomsonreuters.com@reuters.net))
