Apple has always been known for producing innovative products and moving into industries in which it did not have any presence at all. The company proved it by moving into the music & smartphone industries in the 2000s. Now, it is moving into the credit card industry. Last month, the tech giant announced that it was going to roll out its virtual credit cards in collaboration with investment banking giant Goldman Sachs in August. The process has now started and Goldman Sachs has already started issuing these cards to users. The product is a highly interesting one and is wholly aimed at people who own an iPhone.
A person who uses the virtual credit card will be offered 2% cashback for all charges made through Apple Pay and in addition to that, there is also going to be an app in which the customer can view all his transactions. On the other hand, for Goldman Sachs, it is a big opportunity to expand further its consumer banking brand known as Marcus. It helps the bank to become less dependent on volatile businesses like investment banking and asset trading. The news was well-received by the markets as well and the Apple stock rose by 1% on Tuesday when the news of card issuance broke.
The company also announced that at this point of time the card is only going to be issued to those customers who had expressed an interest in the credit card. Invites to sign up to the service have been sent to those customers on Tuesday. A credit card expert, however, stated that the Apple credit card might not prove to be an instant game-changer simply because of the reason that other established credit card brands offer a range of benefits. The expert stated,
The Apple Card doesn’t play in the same league as premium rewards credit cards like the Chase Sapphire Reserve or AmEx Platinum.
That being said, it is important to note that these are still the early days of the product and the company could radically change the benefits offered if the credit card catches on.