Apple is moving from new tech features, and instead offering a new method of payment for their tech.
With Goldman Sachs and Apple they are working on creating the first Apple credit card, bearing the Apple Pay brand. This is the first credit card by Goldman to help banks expand effort for consumer products, while the Apple Pay will extend their brand.
All the details have yet to be settled between Apple and Goldman, with months of deliberation and both companies denying to comment. Goldman wants to offer services such as savings account and personal loans through its consumer banking service.
The goal is to use new products to reduce its reliance on trading revenue for the near future. With the new developments in consumer finance business, Goldman works on recent consumer buildup focusing on credit cards.
Barclays offers a credit card that can be used to finance Apple products, offering reward points that can be used for financing a new Apple product purchase and Apple gift cards. The benefits for the new card are yet to be determined. Apple Pay is still in the phases of making it a common form of payment, while expanding the option for more stores to have.
The Apple credit card can offer the choice to use Apple Pay in physical places that have yet to update their software to include the digital Apple Pay, while spreading brand awareness for Goldman and Apple in the physical world.
The credit card will also encourage more to use the Apple Pay method for payment, since only 13 percent of active iPhone users activated the Apple Pay feature (for last year). Apple is looking to compete with Samsung and Google Pay that have highest active user volumes.