Apple’s efforts to replace the wallet with Apple Pay was the tipping point in mobile payments service and now the iPhone maker is branching out in a more diverse payments industry. Apple Inc. (NASDAQ:AAPL) is planning to create an Apple Pay credit card in collaboration with investment bank Goldman Sachs, reports The Wall Street Journal. The Apple Pay credit card could launch as soon as early 2019.
It is unclear that whether this would be your regular credit card or will it be Apple-centric, though it would carry an Apple Pay logo, according to the report. Currently, the tech giant had an Apple Rewards credit card with Barclays which offered interest-free financing and rewards for buying Apple products. With the new tie-up, Apple would end its partnership with Barclays, replacing it with Goldman Sachs as the creditor. As of now, the specifics terms of the deal is still being decided upon including the benefits from the planned credit card and ‘perks for the customers’.
The heightened interest clearly signals Apple’s increasing focus on its growing services business. The company’s payment service-cum-digital wallet Apple Pay is available since October 2014 and allows iPhones (iPhone 6 onwards), iPads and Apple Watch to make payments in-store, within apps, and on the web using the existing NFC technology. Apple also secures payments with Touch ID or Face ID (in iPhone X) and continual skin contact on the Apple Watch. Apple Pay is currently available in 27 countries. As per the report by LoupVentures that came earlier this year, 16% of iPhone users across the world are believed to have activated Apple Pay, and mass adoption of the service could take next 3-5 years. Apple believes Apple Pay’s domination will come in time.
The impressive growth of Apple Pay and Goldman Sachs partnership could help the company to spread more awareness about the digital payment methods. The convenience of one-step payment process prevents the need to dig through the wallet or purse to make purchases. And now the payment process will become more seamless with the Apple Pay credit card. One thing that’s for sure is Apple has found a new flexible way beyond its primary payment system to make buying Apple products incredibly easier and simpler. Perhaps, a more advanced payment method will offset falling iPhone sales as the company has opened a new channel to draw money from the consumers. If Apple has found numerous ways to accept the value, it should also not shy away to deliver in the same proportion.
The Cupertino giant is taking significant measures to enhance its mobile payment service. Last year in December, it added an Apple Pay Cash feature that allows users to make transactions through iMessages or just ask Siri to pay someone. The company already offers a wallet app that makes contactless in-store payments with third-party bank credit and debit cards using iPhone and Apple Watch. It is very unlikely that Apple will ever stop making crazy-expensive products, but now there might be some great deals and offers in store for the customers willing to pay.