The forthcoming credit card from Apple will be available with a range of restrictions and that includes a ban on cryptocurrencies. The card is being introduced in association with Goldman Sachs and the customer agreement of the same was posted publicly in the bank’s website. The agreement says that the card cannot be used to purchase cash advances or cash equivalents that include cryptocurrencies, casino gaming chips, race track wagers or lottery tickets.
While crypto fans will be disappointed by this move, it will not be the first time that credit card providers have banned bitcoin and crypto purchases. Top banks such as Lloyds Banking Group Plc, Virgin Money, JP Morgan Chase and Citigroup have already taken similar steps. The financial institutions are of the opinion that the extreme volatility of cryptocurrencies is too much of a credit risk to allow such transactions.
After Goldman Sachs listed a job opening for a project manager to join its crypto-asset team last July, it is being speculated that the bank might launch its own cryptocurrency. Previously, Goldman Sachs CEO David Solomon has said during an interview that the bank can follow JPMorgan Chase in introducing its own cryptocurrency. “Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments.” he mentioned.
Apple’s decision to introduce a credit card was made in last March and it is supposed to launch in the US in this month. “Thousands of Apple employees are using Apple card every day in our beta test, and we plan to begin the rollout of Apple card in August,” said Tim Cook in an earlier statement.
Apple had mentioned an offer of 2% cash back incentive for using Apple Pay to make purchases. The cash back percent is 3 for Apple purchases. The card can be used from iPhone or through Apple Pay and there is no late fee or penalty rate.
The card users will also be prohibited from using the credit card with jailbroken devices. The users need to receive approval through the Wallet app on iOS to receive the card and the device must meet the necessary requirements to qualify. The agreement also mentions that Apple will lock users out of their credit card accounts if they try to jailbreak or alter their devices in any way.
With its range of restrictions, the card is expected to get popular only among serious iPhone fans. As its revenue from smartphone sales dropped by 12 percent last quarter, Apple is looking to branch out into providing a broader range of services apart from hardware.