Two giants in their respective industry – Apple and Goldman Sachs – are planning to do something together. According to The Wall Street Journal, they have been working for months on an upcoming launch of their joint credit card.
Launch of their joint credit card
Already in 2014, Apple Pay was launched, a payment method whose logo will be on the new credit cards. The Swedes had to wait until autumn 2017 for this, and it is still only customers of a few institutes (Nordea, Klarna and ST1 among others) who can use the method.
Transactions made with Apple Pay can be handled in the Wallet app today. It is in the same app that the credit card will also be managed. For example, it will be possible to track bonuses, manage their budget and set spending targets.
Goldman Sachs broadens its revenue base
There are clear motives for both parties. Goldman Sachs has in recent years tried to broaden its income base due to a weak trend in securities trading. For example, a web bank, Marcus, was recently launched as part of finding other sources of income. The credit card will be their first investment in the area. As a consumer service, it goes hand in hand with the services already offered by Marcus, where you can, among other things, open savings accounts and take private loans.
There is no doubt that the credit card can give Goldman Sachs a huge exposure with iPhone users. In addition, “iPhone users” are a much larger and wider target group than they reach today. This can open up for more and more people using their consumer services and the online bank Marcus.
A natural step for Apple
At Apple, there is hardly a shortage of resources. At the same time, the latest X models of the iPhone – which is by far the company’s largest source of income – have sold below expectations. Here, too, there may be an interest in broadening the revenue base. But it is also a natural step for Apple. They already have a credit card (issued by Barclays) where the user gets bonus points that can be used for gift cards on Apple products.
A rumor of a two percent cashback
What benefits the new card would receive are unclear so far. There is a rumor of a two percent cashback on a large portion of purchases made with the card, and maybe even more when shopping at Apple Stores.
Just being provided with the Apple Pay logo is a change, and a step in the plan to take the payment method to a physical level, which Apple’s representatives have said they want to do. However, they have also previously said that Apple Pay will replace both cash and cards – but there is a long way to go. Last year, it was estimated that about 13% of iPhones enabled the wireless payment method. In addition, there is a lot of competition from other players, including Samsung.