In the four years since Apple Pay was launched, major banks and retailers around the world have allowed customers to use their iPhones to make payments.

On 25 March, Apple went one step further and announced its plans to release a digital-first credit card, Apple Card, partnering with global payments network MasterCard and investment bank Goldman Sachs.

Apple Inc. has long sought to reduce its reliance on hardware revenue by building a services ecosystem that leverages its compelling products across the smartphone, computer, tablet and wearables segments. At its March 25 event, “It’s Show Time”, the world’s largest company by market capitalisation unveiled the next phase of its transition into a tech-focused services company, introducing a slew of services including a premium news subscription service, a subscription video-on-demand service and a game subscription service.

Arguably of greatest interest, however, is the announcement of a digital-first credit card offering, Apple Card, for launch later this year in the US. Apple Card is marketed as being designed to help consumers lead a healthier financial life and offers several consumer-centric features such as spend tracking, interest forecasting and no fees. In this report, we look at Apple Card and its features, how it compares with the credit cards already on offer and potential implications for the big banks.