Update 3/25/19: Full details now released, see our analysis here.
Update 2/21/19: New article from WSJ today about the card. It’ll earn about 2% cash back on most purchases, possibly more on Apple products and services. It will run on Mastercard.The article implies that there will not be significant signup bonuses or other perks/benefits as Apple and Goldman are not eager to join the race among banks.Â
Apple and Goldman Sachs will team up on a new credit card offering, reports the WSJ. Currently, Barclay’s and Apple partner on a Visa credit card which will be replaced with the new card. The card could launch in early 2019. It’s unknown if the new card will process on the Visa, Mastercard, or Discover network.
Apple and Goldman are still hashing out the terms and benefits of the planned card including the perks for customers. The current Apple Barclaycard offers 3 points per dollar at Apple, 2 points per $1 at restaurants, and 1 point per $1 elsewhere. Rewards are redeemed for Apple or iTunes gift cards.
The current card also offers interest-free financing for purchases made within the first 30-days. This perk will apparently be removed from the new card. Separately, Apple will partner with Goldman to offer special financing rates for tech purchases.
We don’t know if the new card will have a signup bonus. The current card has no bonus, but it has the financing offer. The new one won’t have the financing offer so likely will have a bonus. I’d guess $100 or $200, we’ll see.
The card will be called Apple Pay. This seems like a bad idea to me being that it’ll get confused with their mobile payment system by that name, but Apple hopes the name will help push the mobile wallet to center stage as it has a physical plastic card associated with it.
Two interesting things are noted regarding the the finances of the new partnership:
- Apple is looking to boost revenues through this deal by by collecting a bounty from Goldman for each new cardholder, potentially more than $100 per new account. With the Barclay’s card, Apple didn’t get any bounties and instead put that money toward interest-free financing of devices. The new card won’t offer that perk and will leave Apple with additional revenue. Bounties are common among store co-brand card, and it’s why you’ll sometimes see pushy sales rep trying to get a signup as the store may pass on part of the bounty to the employee.
- Apple could take a larger cut of mobile payments from the card if it is used for purchases using the Apple’s digital Apple Pay method. Currently, Apple receives 015% on these transactions; Apple could more than double that under the agreement with Goldman.
We wrote previously that Goldman Sachs was eyeing the credit card market, and this is probably the fruition of that rumor, though it’s possible they’re looking to make more co-brands too. Goldman Sachs already has a co-branded card with American Express and earlier this year Goldman Sachs acquired Final (credit card that offer virtual card numbers and other security features).
Apple Card relies on tech giant’s Apple Pay service.
Users get 2 percent in cash back on Apple Pay transactions, 3 percent on purchases made directly through Apple, and 1 percent on purchases with a physical card.
The titanium, laser-etched card looks cool, but 1 percent cash-back isn’t very high.
https://www.cnbc.com/2019/03/25/apple-unveils-new-credit-card-the-apple-card.html
https://www.apple.com/newsroom/2019/03/introducing-apple-card-a-new-kind-of-credit-card-created-by-apple/
2% back / 3% on Apple purchases. ‘The physical card itself is made out of titanium.’ ‘..’has no card number, no CVV, no expiration date, and requires no signature.’ ‘Neither Apple nor Goldman Sachs will use personal data for advertising, Apple said.’
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As with anything Apple does, it will only benefit them (over-priced and over-hyped products)..
“Rewards are redeemed for Apple or iTunes gift cards”
What a joke.
It will be just as bad as the Starbucks card by chase.
MasterCard
https://www.wsj.com/articles/apple-goldman-sachs-team-up-on-credit-card-paired-with-iphone-11550750400
https://www.cnbc.com/2019/02/21/apple-and-goldman-sachs-partnering-on-a-credit-card-for-the-iphone-wsj-says.html
Am I the only one who thinks Apple will shoot themselves in the foot if they don’t offer some sort of “same as cash” financing that the Barclaycard product offered? Will send people to Best Buy and other stores whose cards do have financing if there isn’t some sort of offer (either on this card or through the other financing they are offering with GS).
I don’t believe the rewards on this card are going to be the focus, as the team behind “final” are the one’s creating this(which had 1% rewards and a bunch of cool features), and will instead likely reintroduce those features in a new way, and position it as a “technology focused credit card that’s actually good for you” If I had to guess, it’ll simply be 1% with “behavior modification rewards” for select Apple purchases. Apple is big on behavioral control, rather than flat out rewards…a.k.a buy 10 itunes songs on your card, and we’ll give you the next one free. I don’t believe this card is going to be geared toward churners
i can totally see crazy promo deals only for people with apple CC + apple pay
Need to go big and beat the 20x (or was it 22x?) Discover/Apple Pay promo from a couple years ago haha