Apple and Goldman roll out virtual credit card
Apple and Goldman Sachs Group have launched a virtual credit card, which will help the iPhone maker diversify from device sales and also build out the Wall Street bank's new consumer business.
With the card, Apple aims to draw in iPhone owners with 2pc cashback on purchases with the Apple Pay service, no fees, and an app to manage related finances.
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For Goldman, the card will enhance the firm's focus on its Marcus consumer banking brand, which it started in 2015 to even out volatile results from businesses such as trading and investment banking.
The company said a limited number of the people who had expressed interest in Apple Card would start receiving sign-up invitations this week.
"The Apple Card doesn't play in the same league as premium rewards credit cards," said Sara Rathner, an expert on credit cards at NerdWallet. "Those cards charge ultra-high fees, but in return you get some pretty sweet perks: massive sign-up bonuses, annual statement credits and a higher point-earning rate for travel expenses."
Apple will offer an option for a physical card made of titanium, but with no visible number. Instead, the card's number is stored on a secure chip inside the iPhone, which will generate virtual digits for online or over-the-phone purchases that require a number.
Apple said purchase information would be stored on the user's iPhone and that it cannot see the data.
Goldman will not be allowed to use data for marketing purposes.