Goldman Sachs partners with Apple for new card

Amanda Salazar

Apple launched their newest service, Apple Card, on Aug. 20 for all current customers. The credit card is made of titanium and laser-etched — and has no card number. The iconic white design excited the tech enthusiasts along with regular customers way before the card became available. 

The card is just the most recent addition to the company’s growing array of services; only so many iPads can be sold before sales begin to slow, but subscriptions will generate revenue even past the initial purchase.

According to an article from Forbes, the card is the result of a partnership between Apple and Goldman Sachs, with Mastercard processing the payments between the companies. 

The expectation is that Apple Card won’t be used very much in its physical card form, but more regularly through Apple Pay, the company’s already-existing mobile payment system. 

Goldman Sachs and Apple created the card with a level of privacy and anonymity that has yet to be seen from other companies.

“Apple doesn’t know where you shop, what you bought, or how much you paid,” says the Forbes article. “Goldman Sachs, the bank behind the credit card, will never sell or share data to third-party companies, revealing your spending habits to advertisers. And Mastercard simply processes payments between parties on the global network.”

Already, Apple Pay has been a good source of income for the Apple company, as it makes money from transaction fees from users and from banks .

In fact, according to a March 2019 article from The Verge, there had been 1.8 billion transactions using Apple Pay in the previous quarter alone. 

As Apple’s services — iCloud, Apple Books, Apple Music — become more popular than their physical merchandise, products such as Apple Pay and Apple Card are expected to do well financially. 

Since the Apple Card was released so recently, the long-term effects of it on the company’s profits are not known, but the card seems to be doing well in the days since it has been released.

“We’re thrilled with the overwhelming interest in Apple Card and its positive reception,” as vice president of Apple Pay Jennifer Bailey was quoted in the Forbes article. “Customers have told us they love Apple Card’s simplicity and how it gives them a better view of their spending.” 

With features such as extreme user-privacy, the capability for both physical and mobile usage and instant cash-back up to 3% on mobile payments, it is clear why Apple customers are enjoying the new product.

“If your titanium Apple Card comes into contact with hard surfaces or materials, it’s possible that the coating can be damaged,” Apple stated on its website. 

Therefore, it is advised to not to place your Apple Card in a leather wallet or pockets with loose change. 

The consumer reviews will give a better idea whether the latest product of Apple is worth the hype.