Apple Card Users Have Borrowed $786 Million Using Service
Apple's decision to launch the Apple Card marks the company's latest attempt to earn more revenue through Services. The segment performed well in Apple's last quarter, as it managed to raise revenues from $10 billion to $12.5 billion. Services revenue includes that what Apple earns by the Apple Card, and today we've got more details for the company's credit card. Take a look below for more.
Goldman Sachs Extends $10 Billion Credit Line To Apple Card Users; Bank Had $786 Million In Loan Balances From Apple Card Users
Bloomberg is out with data that the publication claims is from Goldman Sach's recent regulatory filings. We were unable to locate the data ourselves from Goldman's 8K, earnings presentation and investor presentations. The data shows that Goldman Sachs has extended a $10 billion credit line to users of the Apple Card. A credit line is an amount extended by a bank to its customers for making purchases, paying off obligations or carrying out other related actions.
So far, Apple Card customers have $736 million in loans outstanding. This sounds healthy since it's only been a handful of months since the company introduced the Apple Card in August this year. Looks like Apple's credit service is catching on with customers fast.
Through the Apple Card, users can effortlessly keep up to date with their monthly purchases and transactions. Through algorithms, Apple will also inform users on the most efficient way to pay interest on transactions made through the Apple Card. By working together with the Maps app on iOS, the Apple Card will also give users geolocation data of their purchases. Finally, the service will also classify transactions in categories to help customers keep track of the areas in which most of their money is flowing. Additionally, iPhone purchases made through the Apple Card won't require interest on monthly payments for up to 12 months.
Purchases made using the Apple Card from Apple, Uber, Uber Eats, T-Mobile, Walgreens, and Duane Reade will offer users a 3% cashback. Purchases made from other companies will give users a 1% cashback. The service will further bind users inside the iOS ecosystem and let Apple manage a greater part of their lives. But, the company will have to rely on a lot more if it's to make Services make up for the drop in iPhone revenues. But maybe it won't come to that given that Apple's widely rumored to launch a 5G iPhone next year.
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