The Apple Card has arguably been a success for Apple (NASDAQ:AAPL). Available as both a physical and digital card, the card seamlessly integrates into the Apple Digital Wallet providing cash back on all charges along with additional user friendly services like advanced security features and the ability to share cards with family members.
Apple also promotes its zero-fee approach as there are no annual fees, foreign transaction fees, and no late fees.
Launched in 2019, estimates place Apple Card users at well over 12 million cardholders.
Recently, Apple started promoting the ability to see your credit limit before actually receiving a card. The process is done without a hard credit pull, so it will not have any impact on your personal credit. Apple clearly wants to increase the number of cardholders. A hard credit pull can actually lower your credit score – at least temporarily.
Apple Card is issued by Goldman Sachs (NYSE:GS) and it may be integrated with a savings account, currently paying 3.9% interest, also managed by Goldman Sachs.
Apple Cash and payment services are provided by Green Dot Bank.
It has long been rumored that Apple was going to separate from the Goldman Sachs partnership, as Goldman has not been pleased with the results of the Apple partnership. Also, Goldman has moved away from its once aggressive strategy of providing consumer services, leveraging in-house skills combined with Fintech.
As there are estimated to be over 130 million iPhone users in the US, providing credit via the Apple Card remains a solid opportunity for the company to expand its services, and drive more revenue.
