Apple Incorporation teams up with the Goldman Sachs in order to issue the credit card. These credit cards could be paired with the iPhones according to The Wall Street Journal. The basic concept behind this card is actually to integrate the Apple wallet app deeply. This would allow the users in managing the businesses of theirs, tracking the rewards, as well as set up their spending goals.
This credit card would be using MasterCard’s payment system as well as additionally offering a 2% return on all the purchases. This wallet might allow more cash back for the people buying apple products. It would be further several financial products, like Marcus loans or wealth management facilities. This collaboration would not help Apple increase their services, but it would also be benefiting Goldman Sachs in terms of more customer loans.
This collaboration doesn’t come without risks.
Apple might anger its current partners as they would no longer have the same level of integration once Apple has its credit card. In addition to this, Goldman Sachs has already started working on this project by establishing various developments that are necessary to ensure that this would run smoothly. This project’s projected cost is around 200 Million US Dollars.
The experts believe that the might not live up to the expectations of Apple as the other firm doesn’t have any prior experience in this industry and the economy is slowing down. The idea behind the product doesn’t seem well thought-out but if the features provided by the firm would be distinct, this platform might pose a threat to PayPal, as the Apple wallet and Apple pay’s popularity would rise tremendously.
These cards are replacing the need for the physical location of a bank. People no longer have to pay by going to their banks, waiting in cues, and unable to access the services on the holidays. These new cards are ensuring 24/7 banking in its true sense.