# The Apple Card’s Future: A Premium Travel Credit Card on the Horizon?
Recently, the Apple Card marked its fifth anniversary, stirring up conversations about its future and potential transformations. Although the current version of the Apple Card has its advantages, it has not significantly boosted Apple’s profits. As the technology leader seeks to bolster its role as a services provider, launching a high-end travel credit card might be a wise strategy.
## Current State of the Apple Card
Introduced in 2019, the Apple Card is a simple credit card that charges no annual fee. It offers 2% cash back on purchases made via Apple Pay, with a higher 3% cash back on purchases from Apple and select partner vendors. While appealing, these benefits lack the thrill and competitive advantage found in other credit card offerings.
From a financial standpoint, the Apple Card has presented difficulties for Goldman Sachs, the issuing bank, which has reportedly faced losses exceeding a billion dollars. With Goldman Sachs aiming to dissolve its partnership in the coming months, it may be the perfect moment for Apple to reassess its credit card approach.
## The Competitive Landscape
In the realm of general-purpose travel credit cards, prominent players like Chase, American Express, Citi, and Capital One lead the pack. These cards often require users to manage several accounts to maximize rewards, which can be a hassle. Apple has the chance to streamline this experience by introducing a unified travel credit card that appeals to a wider audience.
For example, the Chase Trifecta merges the Chase Freedom Unlimited, Freedom Flex, and Sapphire Preferred, allowing users to accumulate points across various categories while consolidating them into a single rewards ecosystem. Apple could design a similar framework, making it more straightforward for users to earn and redeem rewards.
## Potential for Apple Card Pro: A New Age of Rewards
An envisioned “Apple Card Pro” could concentrate on travel rewards while keeping some features of the current card. It could offer a structure where users earn 1x points on all purchases and 2x points when utilizing Apple Pay. Furthermore, Apple could boost the card’s attractiveness by providing 3x points on dining and travel expenditures, doing away with the necessity for multiple partnerships with different merchants.
Setting a competitive annual fee of approximately $299, similar to the American Express Gold Card, could be ideal. To further captivate users, Apple could introduce premium benefits, such as airport lounge access, which is increasingly desired by frequent flyers.
## Travel Perks
To boost the allure of the Apple Card Pro, forging alliances with airport lounge networks like Priority Pass could prove transformative. This would give cardholders entry to over 1,600 airport lounges globally, positioning it as one of the more economical cards to provide such a benefit. Limiting access to around 12 visits annually would still afford users plentiful opportunities to enjoy this feature while allowing Apple to benefit from the annual fee.
Additionally, Apple could create a centralized travel portal that simplifies the search for point redemptions across various partners. This would ease the frustration of navigating multiple sites to locate the best value for point transfers, enhancing the user experience.
## Final Thoughts
As the Apple Card nears a critical turning point in its development, introducing a high-end travel credit card could align with the company’s overarching strategy of expanding its services portfolio. By concentrating on travel rewards, simplifying user interaction, and offering attractive benefits, Apple could draw in a new group of customers while reinvigorating its credit card program.
Would a travel-centric Apple Card motivate you to enroll, or do you see a different path for Apple’s credit card strategy? Share your opinions in the comments below.
