The Apple credit card being launched with Goldman Sachs Group will not allow the purchase of cryptocurrencies with the card, according to a customer agreement posted to Goldman's website on Friday. The Apple Card customer agreement said the card cannot be used to purchase cash advances or cash equivalents that include cryptocurrencies, casino gaming chips, race track wagers or lottery tickets.
Goldman declined to comment and Apple did not immediately respond to request for comment.
The Apple Card is part of a broader effort by Apple to derive more of its revenue from services after years of heavily reliance on iPhone sales, which declined 12 percent in the most recent quarter.
The Apple Card is Goldman's first credit card. The Wall Street investment bank has been offering more products to consumers, including personal loans and savings accounts through its Marcus online bank.
It will sync with iPhone's users' Apple Wallet and work through its payment system Apple Pay, said Jennifer Bailey, vice president of Apple Pay at the time of launch. Cardholders will earn 2 percent cash back on all purchases made using their phones or 3 percent cashback on Apple products.
The physical credit card will be made of titanium - laser-etched with users' names but no numbers as a security feature. It will pay 1 percent cash back on purchases.
Apple and Goldman are not alone in banning the purchase of cryptocurrency such as Bitcoin with credit cards. Major American and British banks Lloyds Banking Group and Virgin Money banned such purchases last year, following the lead of US banking giants JP Morgan Chase & Co and Citigroup. The banks were concerned that volatile prices could leave consumers saddled with debts they could not repay.
© Thomson Reuters 2019