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Apple and Goldman Sachs issue a cobrand credit card



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Apple and Goldman Sachs are planning to issue a cobrand credit card later this year, which will provide related iPhone and money management features after the first test with employees in the coming weeks, according to The Wall Street Journal, who quoted people who were familiar with the case .

LUCAS JACKSON / REUTERS

The card, which was originally reported last year, will include tools associated with Apple Wallet, such as the ability to set spending targets, track rewards, manage balances, and receive cost statements, which after reportedly being developed by computer engineers. And the credit card that will run on Mastercard's network will offer up to 2% cash back on most purchases. The credit card could allow both companies to link each other's expertise to get further into the payment room with a unique product.

  • The card could escalate Goldman Sachs & # 39; push in retail and consumer-oriented products. Goldman has improved GS Bank, its consumer banking business through several initiatives: In 2016, it acquired GE Capital and launched Marcus, the only digital offering that provides personal loans and an online savings account that recently reached $ 35 billion in deposits. In addition, Goldman Sach purchased the credit card start-up and newly-acquired Clarity Money, a staff economic management (PFM) app, both indicating a deeper interest in credit cards and personal finance. Partnering with Apple can be an effective way for Goldman to streamline its push to reach consumers on a large scale – especially if the card offers cash back, which is a top motivator for consumers to make a card for their primary card. And the card – which would mark Goldman Sachs' first credit card – could accelerate the company's goal of generating $ 1 billion in annual revenue by 2020 through its new consumer banking business.
  • For Apple, partnership with an established financial institution could cultivate consumer confidence in its other payment tasks. Apple plans to increase revenue from the service service segment to $ 50 billion by 2020, and this credit card can help secure this goal: Apple is currently charging a fee when customers use credit cards through Apple Pay, but cutting fees through a credit card for the company. In addition, Apple executives hope that the card will increase Apple Pay usage per month. WSJ. Although the card is not directly tied to mobile payments, it can help distinguish Apple Pay and encourage adoption. Apple Pay exceeded 1.8 billion transactions in Apple's financial year Q1 2019 (ended December 29, 2018) – as only an estimated 14% of US consumers use mobile wallets, suggesting that the user is small. This is especially true if companies add a direct Apple Pay integration or incentive tied to the card. And as Apple expands its presence in the payload, it could ultimately increase interest, trust and awareness of Apple Pay.

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