# The Prospective Evolution of Apple Card: A Premium Travel Credit Card?
Apple Card has recently marked its five-year milestone, sparking conversations about its future and possible transformation. As Apple aims to strengthen its position as a services-oriented company, the inquiry arises: might a premium credit card be forthcoming? Given that the existing Apple Card hasn’t been particularly lucrative and Goldman Sachs is set to terminate its collaboration, this could be an opportune moment for a revamped product.
## Apple Card as It Stands
At present, the Apple Card functions as a simple credit card with no annual fee, offering users 2% cash back on purchases via Apple Pay. Furthermore, it provides a 3% cash back rate on transactions made at Apple and selected partner stores. Although this framework attracts some users, it lacks the thrill and extensive perks found in numerous rival credit cards.
Concerns about the financial outcomes of the Apple Card have emerged, with reports suggesting that Goldman Sachs, the card’s issuing bank, has faced losses exceeding a billion dollars since its inception. As Goldman Sachs gears up to exit the partnership, Apple might be contemplating a fresh approach for its credit card lineup.
## The Competitive Landscape
The credit card arena is flooded with choices, especially within the travel rewards domain. Prominent players like Chase, American Express, Citi, and Capital One lead this segment with general-purpose travel credit cards. These cards usually compel users to manage multiple accounts to optimize rewards, which can be cumbersome.
For example, the Chase Trifecta comprises three cards designed to work in unison to maximize rewards: the no-annual-fee Chase Freedom Unlimited and Chase Freedom Flex, along with the $95 Chase Sapphire Preferred. This arrangement facilitates points accumulation across diverse categories and allows transfers to travel partners. However, juggling multiple cards can be daunting for many consumers.
## The Concept of an ‘Apple Card Pro’
Considering the competitive environment, Apple has the opportunity to launch a single, high-end travel credit card that streamlines the rewards experience. This new card, provisionally named the “Apple Card Pro,” would prioritize travel perks and partnerships with airlines and hotels, which have presented challenges for other financial institutions.
The suggested framework for the Apple Card Pro could encompass 1x points on all transactions made with the physical card and 2x points for purchases through Apple Pay. Preserving the 3x points on Apple purchases would further motivate expenditures within the Apple ecosystem. Nonetheless, the card could pivot from numerous partnerships to instead provide 3x points on dining and travel-related charges.
A potential annual fee of approximately $299 would position the card competitively, akin to the American Express Gold Card. To boost its attractiveness, Apple might incorporate benefits such as airport lounge access.
## Travel Perks and Collaborations
One of the standout features of the Apple Card Pro could be access to airport lounges. By teaming up with Priority Pass, Apple could grant cardholders entry to over 1,600 lounges globally. This advantage would be one of the more reasonably priced in the market, possibly allowing for a limited number of visits per year—perhaps 12—making it suitable for frequent travelers.
Moreover, Apple could create a unified travel portal that simplifies point redemptions across various partners. This would tackle a common frustration for travelers who frequently find it laborious to navigate the best redemption options across different airline and hotel platforms.
## Conclusion
As Apple Card moves toward its next chapter, the possibility of a premium travel credit card presents an exciting opportunity. By refining the rewards framework, providing valuable travel perks, and capitalizing on its existing ecosystem, Apple could develop a captivating product that attracts a wider audience. Whether a travel-centric card would draw users to subscribe to Apple Card is yet to be determined, but it certainly paves the way for innovative prospects in the credit card sphere.
What do you think? Would you be interested in an Apple Card Pro, or do you believe Apple should pursue an alternative strategy? Share your thoughts in the comments!
