Tim Cook at Apple event
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The Apple and Goldman Sachs joint credit card could be hitting the market soon. After announcing last year that the tech giant and Wall Street firm would be launching an Apple Pay credit card, the Wall Street Journal reports that employee testing of the product should begin within the coming weeks.

Both companies are looking to expand their consumer base, and this new Apple Pay credit card just might be their ticket.

Apple has long been a tech favorite among the Millennial crowd, but they are beginning to shift their focus to other products and services as iPhone sales start to lose steam. Goldman Sachs, a name that has long been synonymous with Wall Street elites and billionaires, is hoping this will help its online consumer bank, Marcus, hit its stride among that same audience.

What will the Apple Pay credit card offer consumers?

So far, exact features and benefits have remained mostly vague. The cash back card will use Mastercard’s payment network and offer “2% cash back on most purchases and potentially more on Apple gadgets and services,” according to the Wall Street Journal’s report.

Other details around what kind of perks and benefits the card will offer still remain largely unknown. Apple is known for its integration of features across products, and we can expect the same from the Apple Pay card — engineers are apparently working on new features for the Apple Wallet app that will focus on responsible spending and paying off debt.

“My initial take is that it’s definitely interesting,” comments Ted Rossman, industry analyst for CreditCards.com. “I’ll want to see if there’s a sign-up bonus, an annual fee and a balance transfer offer.”

Potential breakthrough for mobile wallet usage

According to Wall Street Journal sources, Apple and Goldman Sachs hope to lure customers with extra features on Apple Wallet. However, a 2018 study from CreditCards.com reports that only 16 percent of surveyed consumers are mobile wallet users. This is partially due to the fact that digital wallets haven’t quite caught on with small businesses at this point. According to the same CreditCards.com study, only 25 percent of small businesses accept mobile wallet payments.

If this new card proves popular, we might start to see more businesses offering customers the ability to pay via digital wallet. This could also lead to a more competitive marketplace as credit card issuers start to up their own mobile wallet game.

New options in an already crowded market

Apple and Goldman Sachs are entering the credit card market relatively late in the game. Banks like JPMorgan Chase, Bank of America and Citi have already established themselves within the credit card industry.

Citi already offers a 2% cash back option in its Citi® Double Cash Card (rewards are earned 1% when you make a purchase and the other 1% when you pay off those purchases), and other issuers offer competitive tiered rewards structures and rotating cash back categories. As Apple and Goldman Sachs get closer to the card launch, it will be interesting to see what other features and benefits the card will offer.

Rossman speculates that Apple “will likely position this as a good fit for cash back lovers who spend a lot with Apple.”


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