Apple is banning users of its highly anticipated Apple Card from purchasing cryptocurrency.
According to a new user agreement, the card can’t be used for “cash advances or cash equivalents” which includes the purchase of crypto assets.
“Cash Advance and Cash Equivalents means any cash advance and other cash-like transaction, including purchases of cash equivalents such as traveler’s checks, foreign currency, or cryptocurrency; money orders; peer to peer transfers, wire transfers or similar cash-like transactions…”
Apple and its partner Goldman Sachs are following in the footsteps of J.P. Morgan Chase, Bank of America, Citigroup and Wells Fargo, which all banned the purchase of crypto with credit cards last year.
At the time, Fortune reported that Wells Fargo “feared that the asset’s wild price swings could cause buyers to renege on payments back to the bank.”
Wells Fargo released a statement, saying,
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
Apple’s new card is the tech giant’s attempt to expand its range of services after a 12% drop in its iPhone sales in the second quarter of this year.
The card is set for release this month, promising a high level of security, no annual fees and cash rewards, with an annual purchase rate (APR) of 13.24% to 24.24%.