Apple’s chief executive has confirmed the company is launching its new credit card in August as it moves to diversify its income with services.
Tim Cook made the announcement following the company’s quarterly results which featured a continued drop in sales for Apple’s flagship iPhone range.
Apple Card is soon to join this services department, offering consumers “clearer and more compelling” rewards than rivals as well as seamless integration with the Apple Wallet app.
The new card will first be available in the US and will see Apple offer 2% cashback for all purchases using the Apple Card with Apple Pay, rising to 3% when purchases are for Apple products or services.
Apple has also said there would be no fees associated with the card, though late or missed payments would result in additional interest being added towards customers’ balances.
The company added that customers could sign up for the new card in minutes to be used in stores, apps or online worldwide.
Similar to banking app and card Monzo, Apple Card will utilise Apple Wallet features to help consumers track their purchases.
Apple added that it would ensure purchases continued to be secure because they would be authorised with Face ID or Touch ID and a unique security code.
The company has also designed a physical card for shopping at locations where Apple Pay is not yet accepted, which it said would give 1% cashback and would be more secure than any other physical credit card.
The slowing top-range smartphone market weighed down Apple’s latest earnings, dragging quarterly profits down 10% to $13bn while iPhone sales fell 12% in the quarter to $25.06bn.
But the falling iPhone revenues were offset with sales growth in every other area of Apple’s business, including its iPad and Mac devices, and its growing services arm.