Apple launched a digital (virtual) credit card with Goldman Sachs Group. As an additional feature of Apple’s mobile phone. The company just starts rolling out a “preview rollout” today to only selected users, and it will be extended further to all iPhone owners in the US later this month.
According to the TOI report, in March this year, Apple released an Apple credit card at the spring new product launch conference. This product is designed to attract iPhone users. Consumers can use Apple’s credit card for shopping settlement when using Apple’s payment service. Apple to offer 2% cashback on purchases with the Apple services to iPhone users and does not charge any fees. Apple also provides an application to manage related finances and promises to pay attention to the protection of consumer privacy.
When it comes to functionality, the card is designed to work with iPhone. Once the system approves credit card sign-up, the user can instantly start using this card via Apple Wallet app and Apple Pay system.
In addition to digital credit card, Apple also offers the option of a titanium physical credit card, but physical credit cards do not have the visible numbers printed on this card. Instead, the credit card number is stored on a security chip inside the iPhone that generates virtual numbers to make any purchase.
For the issuing bank Goldman Sachs Group, Apple Credit Card is also a new initiative for Goldman Sachs Group to enter the consumer finance business through the Marcus brand in 2015. Apple said that a limited number of consumers interested in Apple’s credit card will begin to receive registration invitations on Tuesday.
Gene Munster, managing partner with Loup Ventures and a long-time Apple watcher, claims that Apple’s credit card usage may not be high in the first year, but by 2023, Apple credit card can generate about 1.4 billion US dollars of high-margin income, which will increase Apple’s overall profit by 1.8%, and will promote Apple’s payment. Service revenue increased to $5.38 billion.
As Apple is known for its strict privacy policies, the company assure that Apple credit card users’ purchase information is stored on the user’s iPhone, and users cannot see this information. Apple does not allow Goldman Sachs to use user data for marketing purposes or to sell other Goldman Sachs products. Currently, Apple Pay has approximately 50 million users in the United States. Overall, the company has high hopes from this new initiative to extend its business further.