Date: 6th August 2019
The Apple Card was released in the market on Tuesday by Goldman Sachs Group Inc. and Apple Inc. It is a virtual credit card from Apple which is a move to diversify the product portfolio of the tech giant.
The card will entitle its users, i.e. iPhone users, to a 2 percent cashback if they purchase items using the Apple Pay service. It will require no fees from its users and will also feature an application for users to manage their finances.
While Apple will benefit from the release of the product by diversifying its business, Goldman Sachs has similar aims to fulfil through the deal. The Apple Card will help the bank expand its Markus consumer banking brand. Markus hit the market in 2015 as the company moved to compensate for the volatile trading and investment banking.
Shares of the tech giant were being traded for $195.30, increasing by 1 percent.
Apple Inc. said in a statement that users who showed an interest in the virtual credit card will receive invitations from the company from Tuesday.
An analyst explained that the Apple Card is not similar to the AmEx Platinum or Chase Sapphire Reserve credit cards which charge very high fees. However, such cards do offer exclusive perks.
A physical card can be availed by users which would be made of Titanium, said the company. However, there wouldn’t be any number visible on the card. Alternatively, the card number will be securely stored on the iPhone. Users will be able to access virtual numbers for purchases.
Apple reiterated that it will not be able to access the data of the card stores in the iPhone. In addition to that, Goldman Sachs will also not be able to use it for marketing purposes. There are claims that users will not avail the card in huge numbers in the first few years of its launch.