Apple Card recently hit its five-year mark, and it got me thinking about what could be next for the credit card. Given that the Apple Card isn’t hugely profitable and Apple’s push towards becoming more of a services company, it might make sense for Apple to introduce a premium version of the card.
Current Apple Card
Right now, the Apple Card is a straightforward, no-annual-fee credit card that offers 2% cash back when you use Apple Pay, plus 3% cash back on Apple products and certain partner merchants. While it’s a decent option, it’s not particularly exciting as a credit card.
Goldman Sachs, the bank behind the Apple Card, has reportedly lost over a billion dollars on the card, and they’re expected to end their partnership with Apple in the next 3-6 months. Given these developments, it might be interesting to see Apple introduce a version of the Apple Card with an annual fee, possibly focused on travel benefits.
The Competition
Several banks already offer travel-focused credit cards, like Chase, American Express, Citi, and Capital One. These cards aren’t tied to a specific airline or hotel, making them versatile for general travel purposes. However, to get the most value, you often need multiple cards. Apple could simplify this by creating a travel credit card that appeals to a broader audience.
For example, Chase has a popular setup known as the Chase Trifecta, which includes the Chase Freedom Unlimited, Chase Freedom Flex, and Chase Sapphire Preferred. The first two cards have no annual fee, and the third costs $95. They all earn points within the same system, allowing users to combine points and transfer them to travel partners like Southwest Airlines or World of Hyatt.
‘Apple Card Pro’ Concept
Apple could potentially create a great travel-focused credit card, but it would require some effort. Apple would need to partner with various hotels and airlines to make the rewards program attractive, something that banks like Wells Fargo and Capital One have struggled with—neither of them have partnerships with major U.S. airlines.
For Apple’s travel credit card, they could keep the current system of earning 1x points with the physical card and 2x points with Apple Pay, making it a good all-around option. They could also continue offering 3x points on Apple purchases but shift the focus away from other partnerships. Instead, they could reward users with 3x points on dining and travel expenses.
Travel Benefits
Apple could partner with Priority Pass to give Apple Card “Pro” users access to over 1,600 airport lounges worldwide. This benefit would make it one of the more affordable credit cards to offer lounge access, though it might limit visits to around 12 per year—still plenty for most people. If users don’t use all their visits, Apple and the issuing bank would still profit from the annual fee.
It would also be great if Apple developed a unified travel portal where users could search for point redemptions across all of their partners, similar to point.me. Currently, finding the best value requires searching each partner individually, but Apple could simplify that process.