Flaunting a gorgeous titanium finish, the Apple Card was announced on August 20, 2019, meaning today marks its 5th anniversary since the company entered into the financial services category. With no card number, CVV security code, expiration date, or signature present on the credit card, it touted security like no other, and thanks to consumer-friendly features, Apple Card became one of the fastest-growing services issued by the technology giant’s partner, Goldman Sachs. According to 2022 statistics, around 6.7 million American cardholders have an Apple Card.
Apple Card and Goldman Sachs have had a volatile relationship ever since its inception, but the company continues to offer features that are discouraged by the competition
A few attractive selling points of the Apple Card were that it does not charge late fees or an annual fee, giving cardholders peace of mind. Additionally, it featured software that discouraged users from accepting debt, and even if they did accept it, there were measures in place that forced them to pay it off quickly. Unfortunately, the banking industry saw these features as a risk, which would explain why all financial institutions were so reluctant to partner with Apple. The Cupertino firm’s long-term partner Barclays, JPMorgan Chase, and others turned down the company’s proposal, but Goldman Sachs saw value in it.
Later, the bank said that it was ‘thrilled’ with the latest Apple Card partnership, but in time, Goldman Sachs was forced to eat its own words in January 2023, when it incurred a $1 billion loss, with one executive regretting that a business relationship was ever formed with Apple. As this tumultuous alliance kept chugging along, Apple introduced more services, such as a high-yield savings account called Apple Card Savings. Initially allowing for a $250,000 deposit, customers were offered a 4.15 percent Annual Percentage Yield (APY), making it higher compared to the industry.
Eventually, the maximum deposit limit was increased to $1 million, allowing more Apple Card Savings account holders to enjoy an annual profit with their deposits. Just recently, the J.D. Power U.S. Credit Card Satisfaction Study awarded the Apple Card with the ‘Best Co-Branded Credit Card for Customer Satisfaction with No Annual Fee.’ However, with Apple’s relationship with Goldman Sachs hanging by a thread, it is only a matter of time before the California-based giant has to seek an alternate business partner.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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