The Apple Card is being tested with Goldman Sachs ahead of the launch this summer and is receiving positive feedback.
CNBC, citing comments Goldman Sachs Chief Executive David Solomon made at Recode's Code Conference being held in Scottsdale, Arizona this week, reported the executive said he has been testing the credit card — which is linked to a user’s iPhone — and has been pleased with the experience.
“It’s in beta right now; there are some employees at Goldman Sachs and some employees of Apple that are using the card,” Solomon said, according to CNBC. “I’m using the card, I like the way it works. I like the simplicity, the lack of friction when it comes to paying bills, looking at what you’ve spent, ease of use.” The executive went on to say the early feedback from employees indicates “there will be a lot of interest in it when we finally do launch it later this summer.”
In late March Apple and Goldman Sachs announced the Apple Card, which users sign up for through Apple Pay. They get approval on their device and can begin using it immediately. The card is stored in the wallet app and has zero in the way of fees. It helps users stay on top of transactions and when payments are due. It’s slated to launch later this summer. Apple claims it will offer interest rates not seen on other credit cards.
While the credit card is expected to appeal to consumers thanks to zero in the way of fees, between a mobile app that encourages consumers to avoid debt and to pay it off promptly and what Apple said will be lower interest rates that are available today, Goldman Sachs isn’t expected to make much. For Goldman Sachs, it will be a test to see if the endeavor is profitable at a time when the economic growth in the U.S. is in the late innings. According to a recent CNBC report, Citigroup was reportedly in advanced talks with Apple to partner on its new credit card but decided not to move forward. Citigroup reportedly bailed over concerns that it wouldn’t earn enough of a profit from the partnership. The report noted that JPMorgan Chase, Barclays and Synchrony were also in the running to partner with Apple on the credit card.