Apple just unveiled its new take on an old innovation, a Goldman Sachs-linked credit card called the Apple Card.
Users can sign up through their iPhone and get access to the card in minutes when it becomes available in the U.S. this summer, according to the tech giant’s Monday presentation. The new card hinges on Apple Pay, the company’s mobile payment and digital wallet service, which has made inroads in merchant acceptance since its inception in 2014.
For situations where Apple Pay isn’t accepted, the tech firm created a sleek-looking, minimalist titanium card. It has just your name, etched with lasers, without card numbers and other sensitive information.
The Apple Card pays 2 percent in cash back on Apple Pay transactions, 3 percent on direct Apple purchases, and 1 percent on purchases with the physical card. The rewards will be available on a daily basis, according to Apple executive Jennifer Bailey.
Source: Apple Apple Cash unveiled at the Apple Spring event on March 25th, 2019.
The card is a step into new territory for both companies. Apple, which announced new subscriptions for video and news services Monday, is trying to develop new revenue sources beyond its popular hardware products.
For Goldman Sachs, its first credit card would continue a nascent push into consumer financial products after spending most of its 150-year history catering to institutional investors, corporations and governments.
The card, which lets users manage spending and rewards through the iPhone’s Wallet app, was set to be tested by employees of both companies, a person with knowledge of the situation said last month.
“With our hardware, software and services, we think Apple is uniquely positioned to make the most significant change in the credit card experience in 50 years,” Apple CEO Tim Cook said.
Apple Pay is accepted by more than 70 percent of U.S. retailers and will work in more than 40 countries by year-end, Cook said. The service will pass 10 billion transactions this year. It will also work in the mass transit systems of Portland, Chicago and New York this year, he added.
Visa shares dropped slightly on the announcement from Apple.
Goldman Sachs CEO David Solomon attended the event in Cupertino, California, but did not address the audience.
David Paul Morris | Bloomberg | Getty Images Jennifer Bailey, vice president at Apple Inc., speaks during an event at the Steve Jobs Theater in Cupertino, California, U.S., on Monday, March 25, 2019.