Revolut vs Apple Card: Understanding the Difference

Monday, June 22, 2020
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Although Revolut and Apple Card share some similar features, they are two verydifferent services.

Onethe one hand, Revolut is an innovative banking app with services thatrange from current accounts to international money transfers,cryptotrading, and more. On the other hand, Apple Card is a consumeror credit card designed for the iPhone and linked to the Wallet app.Unlike Revolut, the Apple Card works similarly to a loan that you canuse to easily make purchases, but that you have to pay back in time.

Bothcards have advantageous policies on international transfers and canhelp you better manage your expenses, but they ultimately servedistinct purposes. Below, I’ll take a closer look at each serviceto help you decide whether Revolut or Apple Card is more suitable foryour needs.

Revolut: Innovative Banking with a Full Range ofServices

Revolutstarted out as an advantageous card and banking app for people whotravelled frequently, but didn’t want to lose money oninternational exchange fees. Since its launch in 2015, the companyhas drastically diversified its portfolio and eventually applied fora banking license. Today, you can use Revolut in most Europeancountries, the US, Canada, Singapore, and Australia.

Unlikethe Apple Card, Revolut is a prepaid debit card, which means that youhave to deposit money on it before you can make purchases. This alsomeans that you don’t owe a debt to Revolut. The Standard card isfree and allows you to exchange up to £1,000 per month withoutpaying any fees. You also get no fee ATM withdrawals for up to £200per month.

Ifneeded, you can upgrade to a Premium or Metal card, which increasesyour no fee exchange and ATM withdrawal limits, and adds severalperks. For example, the Premium card comes with overseas medicalinsurance and free airport lounge passes for you and a friend in caseyour flight is delayed.

Otheradvantages of using Revolut include:

- Exchange in 30 fiat currencies and multi-currency accounts.

- Instant access to 5 cryptocurrencies.

- Investments into cryptocurrencies and stocks.

- Help with savings. You can tell Revolut to round up all of your payments and add the difference to your savings account. You can also set up a regular transfer into your Revolut bank.

- Help with budgeting. The Revolut app includes analytics that can help you categorize your expenses and keep your spending in check. You just set up a budget and Revolut tracks your progress in real-time.

- Revolut Junior. Premium and Metal subscriptions come with 2 and 5 Junior accounts, respectively. These can be used to teach children about budgeting and responsible spending, while you stay in charge of their accounts.

Apple Card: The No-Fees Credit Card Created byApple

Launchedin the US in 2019, the Apple Card was designed by Apple incollaboration with Goldman Sachs and Mastercard. In short, the cardworks similarly to a loan. You apply, and Apple establishes yourcredit limit based on your “creditworthiness”. Then, you can usethe card to make purchases up to that limit, but you owe everythingyou spend to Apple.

Thecompany claims to have reinvented the credit card with the launch ofthe Apple Card. In some ways, this is true. For example, the AppleCard completely eliminates fees. This includes annual,over-the-limit, foreign transaction, and late fees that you wouldotherwise have to worry about with a regular credit card. Not bad.

Thatsaid, being late on your credit card payments does result inadditional interest being added to your balance, and it can affectyour creditworthiness. In addition, although Apple promises toprovide some of the lowest interest rates in the industry, these varyfrom 10.99% to 21.99% based on creditworthiness, which is fairlystandard.

Plus,the Apple Card is designed to work exclusively with iPhones and theWallet app. You do get a physical card that you can use to makephysical payments, but no information (aside from your name) isincluded on it, and you can’t use it to pay through a contactlesssystem.

Nevertheless,there are a few significant advantages to using the Apple Card thatyou don’t get with other, similar credit cards. These include:

- A generous cash back policy. You get 1% cash back when you use the physical card, 2% when you use the Apple Card through your iPhone, and 3% when you buy from Apple and a few other selected vendors. Unlike with most other credit cards, the amount of money you can accumulate through cash back is not capped. Compare this to Revolut’s £12.99 monthly limit.

- The promise of transparency. Part of the appeal of the Apple Card is that it promises to fully disclose how interest works and how you can ultimately save money by scheduling your credit card payments. Most of the information on the app is colour-coded, so you can easily identify the best way to pay off interest quickly, rather than let it accumulate over the months.

- Help with budgeting. Like Revolut, the Apple Card includes neat graphics on your weekly and monthly expenses. Categories are colour-coded, so it’s easy to spot spending trends and make healthy financial changes.

Revolut vs Apple Card: Which Should You Choose?

Beforeyou make a decision, there’s one important aspect to keep in mind.Apple Card is currently available for US residents only, so if youlive in the UK, Revolut is the only real option between the two.

Inaddition, the Revolut app can be used with any smartphone, whereasthe Apple Card is designed exclusively for iPhones. You can stillmake payments with the physical card if you don’t have one, but youdon’t get any of the real benefits that come with the app,including the cash back.

Bynow, you should have a good idea about which of these services isbetter for your needs. But if you’re still comparing the two, I’dsay that Revolut is a better option for people who travel and/or wanta complete banking app. If, on the other hand, you’re looking for acredit card with a great cash back policy and other in-builtbenefits, the Apple Card is a better fit.