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Apple Card Users Earned More Than $1 Billion in Daily Cash Last Year

We spent so hard that time and space folded inside out and spending became earning.

It's like the expression "I met myself coming back" when you're too busy.
 
Apple Card has over 12 million users in the United States, with card holders earning more than $1 billion in Daily Cash rewards in 2023, Apple said today.
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In other words, Goldman Sachs lost over $1 billion in 2023 since they're the ones who pay out the Daily Cash rewards while collecting nothing from credit card swipe fees as Apple pockets 100% of that.

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Because Goldman Sachs was new to consumer banking and was eager to establish a deal with Apple, it is not collecting fees that it would typically get in a partnership for a credit card. Goldman Sachs does not get a portion of the fee that merchants pay to Apple to accept the ‌Apple Card‌. Retailers pay a percentage of each transaction when taking a credit or debit card payment, and Goldman Sachs gets no funding from this.
 
contacos said:
How do they even make money? Your data and purchase history?
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Like any other credit card it's from people paying interests on their balances. I'm sure Goldman is mad they can't data mine Apple Card users the same way they can all their other customers.
 
Norskman said:
Been my primary card for everything as well since it came out, and there are no foreign transaction fees.
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I still shop and use my card at a lot of places that don't take Apple Pay (bills, online merchants, etc.) so I would only be getting 1% with my Apple Card. I pay my balance on all my cards twice a month, so the extra details don't really appeal to me either.

I also don't like that it doesn't let me link it with YNAB.
 
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I really enjoy my Apple Card and my Apple Savings Account. I use it as my primary card and for most transactions. It's well put together.

Hopefully that doesn't change
 
al256 said:
Imagine how much money you'd save, if you could buy every good and service at cost too. Then imagine how much cheaper everything would be if we all earned the same wage.

At a certain point, you have to accept the reality of the world we live in both the good and the bad. These cash-back credit cards, credit card fees, profits and disparity in wages aren't going anywhere.
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Some countries actually have regulations on financial transaction fees. It's not an impossibility.
 
sw1tcher said:
In other words, Goldman Sachs lost over $1 billion in 2023 since they're the ones who pay out the Daily Cash rewards while collecting nothing from credit card swipe fees as Apple pockets 100% of that.
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There is no evidence of that. Presumably, the rewards are paid out from the transaction fees.
 
contacos said:
How do they even make money? Your data and purchase history?
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Also, even if customers pay their balances every month and never pay interest, for every single transaction there is a fee paid by the merchant, the store or website who received the payment. It is plus or minus 2 to 3% depending on how much business the merchant does. That really adds up, too, even when people never carry a balance.

The fact that Apple DOESN'T sell your data and purchase history is one of the things that makes the Apple Card business a bit less interesting to other potential partner banks. They want that juicy goodness. But Apple would rather try and make money other ways.
 
Love the card because there are no numbers on it, every card should be that way. Love the savings account, have used this card since day 1, secure, easy to make a payment. Paid off every month.
 
chrono1081 said:
No it’s earned. If you buy something for $100 you get $2 in Daily Cash. That money isn’t returned from anywhere it’s earned.
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:) Too many people struggle with the concept that after they spend money it is no longer their money.
 
Jensend said:
The price of products is increased to account for the cut the credit card companies take. People who pay cash or equivalent are paying more for products than they should be. There is no free money.
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Yes but..... Every credit card user is subject to this increase no? So a credit card user with no rewards or cash back will pay the same 3% increase right? So if you have cash back or rewards you are at least getting a little of that back or offsetting it somewhat.... whereas someone with a plain vanilla card is just eating it.
 
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MacRumors said:


Apple Card has over 12 million users in the United States, with card holders earning more than $1 billion in Daily Cash rewards in 2023, Apple said today.

apple-card-feature2.jpg

Daily Cash is earned with every purchase on the Apple Card. Apple provides 3% cash back for Apple purchases and items bought from select partners like T-Mobile, Ace Hardware, Panera Bread, Walgreens, and Uber. All Apple Pay purchases with Apple Card earn 2% cash back, and all other purchases earn 1% cash back.

Apple delivers Daily Cash rewards every day, and Apple Card holders can choose to have it added to the Apple Cash card or they can or opt in to having their cash deposited in the Apple Savings Account that launched last year.

Apple says that the "vast majority" of Apple Card users have opted in to having their Daily Cash auto-deposited into Savings, and nearly two-thirds of users deposit additional funds from a linked bank account. The Apple Card offers an APY of 4.50 percent at the current time, which is on par with the high-yield savings accounts from many competing financial institutions.

Almost 30 percent of Apple Card customers make two or more payments per month, and more than a million Apple Card users share their Apple Card with their Family Sharing Group. Close to 600,000 users have added spouses, partners, or another trusted adult to their Apple Card. For those with low credit scores who are not initially approved for an Apple Card, Apple has a "Path to Apple Card Program." According to Apple, 200,000 users have been approved for an Apple Card after enrolling and following the program's personal steps.

It has been almost five years since the Apple Card launched in 2019, and Apple Pay VP Jennifer Bailey said that new tools and features will be coming to Apple Card holders "in the year ahead and beyond."Though Apple Card is approaching its five-year launch anniversary, Apple has not managed to expand it to countries beyond the United States.

Apple's relationship with Apple Card provider Goldman Sachs has also soured, and reports suggest that Apple and Goldman Sachs plan to end their partnership in the next 12 to 15 months. Goldman Sachs is planning to cut back on its consumer business, and the partnership with Apple will be entirely dissolved.

Apple will need to find another partner for the Apple Card, but has said that it is focused on providing the best experience for customers. Interruptions to the Apple Card service are not expected, and there's as of yet no word on the financial institution that Apple might partner with to replace Goldman Sachs. The failure of the agreement between Goldman Sachs and the upcoming shift are likely to delay any behind-the-scenes plans that Apple has had to expand the Apple Card beyond the United States.



Article Link: Apple Card Users Earned More Than $1 Billion in Daily Cash Last Year
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I made 12k lol
 
Yes, this is a very weird scenario for GS in that because they don't get any portion of the "swipe fees" from the card (the vast majority of which I imagine is via Apple Pay given that's how you get at least 2% cash-back), the rewards payment seems to be more of a net expense for GS. They only have the interest charged to customers who don't pay their entire balance every month as revenue.

Whereas any other credit card issuer, the swipe fees make up (I would imagine) >50% of the "revenue" from the card (in addition to interest charged).
 
5 years and they still do not have an API to interact with personal finance tools like Mint or Monarch Money. Every other credit card allows this.
 
pschlampp said:
5 years and they still do not have an API to interact with personal finance tools
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or Quicken. Other reward cards can give you much higher returns if their benefits are of use to you, such as those with extensive travel benefits.
 
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