Apple and Goldman Sachs will partner to create a new iPhone-connected credit card set to launch later this year. According to the WSJ, the card will integrate with the iPhone to track spending, points, and help with budget management.
The two companies are still hashing out the terms, and nothing official about the points earning rate or if there will be a signup bonus has been announced yet.
A few interesting points jumped out from the news articles:
Goldman Sachs is trying to capture new customers: the middle class. We’ve seen Goldman’s efforts in the past to attract the middle class with the Marcus high-yield savings account.
I’m predicting that the spending categories for the card will be for the average person, so not ideal for fine dining or first-class travel redemption.
Apple wants to stay top of mind. Taking a page from the Apple fitness app, it seems like the strategy would be to gamify the money experience to keep users in-app.
Recent Apple sales have been down, so I wouldn’t be surprised if Apple is negotiating a cut of the card transaction fees.
Barclay Visa with Apple Rewards
Apple currently has a relationship with Barclays Visa. The current earning rates might be an indication of the Goldman Sachs card, but hopefully, they improve with the new card.
The main issue with the Barclays card is that the primary purpose is for financing, and most people didn’t carry it in their wallet.
Special financing on Apple purchases
Earn 3x on Apple purchases
2x on dining
1x on everything else
No annual fee
2,500 points = $25 Apple Store/ App Store / iTunes gift card
Watch the video below if you’re interested in learning what my predictions are for the new Apple and Goldman Sachs credit card.
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