- Aug 4, 2021
Apple and Goldman Sachs are planning to launch a joint credit card. Apple’s joint venture with investment bank Goldman Sachs would be placed under the Apple Pay branding. This credit card is expected to launch in early 2019. Though Apple is entering into a new partnership, at the same time it is putting a stop to another old partnership. Apple is expected to end the partnership with Barclays, which has offered customers an Apple reward program and financing deals through a Barclaycard Apple Rewards Visa. Hence now the Goldman partnership will replace the Barclaycard.
This should be exciting news for the Apple buyers as now the bank will offer in-store loans to Apple customers for buying iPhones and other Apple products.
This Apple-Goldman credit card is expected to support sales and the core businesses. Apple is harping on this to boost up its sale since the sale of iPhones has diminished. Therefore Apple is focusing on services such as mobile payments, streaming-music subscriptions, and App Store sales. Apple Pay, which generates revenue on each transaction, is a key contributor but the rate of its usage is less than expected.
The Barclays/Apple card is now offering interest-free financing on Apple devices and pointing toward Apple gift cards. On the other hand, Apple and Goldman are in the process of digging out the terms and benefits of the planned card including the perks and rewards for customers.
Apple Pay was introduced as early as 2014. Many retailers joined the project, yet it did not procure the desired result and therefore faced pushback from companies like Target and Walmart as they tried to develop their own digital wallet service.
Reportedly Apple said it was not worried about the slow adoption of Apple Pay because according to their opinion the mobile wallet was on track, soon it would become customers’ “primary payment system.”
Therefore Apple is more focused on growing the services business and Apple Pay is a part of it. It could be said that through the venture with Goldman Sachs, Apple is trying to spread awareness about the digital wallet. Even earlier this year 16 percent of global iPhone owners have activated Apple Pay. And according to research, widespread adoption is estimated with regards to Apple Pay in the next 3-5 years from now.