Goldman Sachs has made billions of dollars of credit available through its partnership with Apple as the issuing bank for the tech giant’s credit card.
According to a regulatory filing from Goldman Sachs, since Apple Card’s launch in August, it has already lent out $10bn in credit to Apple Card users, with current loan balances worth more than $700m.
Apple Card uses the MasterCard network to enable iPhone users to turn their mobile into a credit card, linked to their Apple Pay account, after an application process that takes just minutes. It is this kind of simplicity, combined with Apple’s high security and large customer base, which attracted Goldman Sachs into the partnership.
On the eve of the launch of Apple Card, David Solomon, CEO of Goldman Sachs, said simplicity, transparency and privacy are at the core of its consumer product development philosophy.
In October, Solomon described Apple Card as “the most successful credit card launch ever”.
Apple Card offers other incentives such as rewarding customers with cash back on spending. It will also get rid of card fees and offer low interest rates. The credit card uses machine learning and Apple Maps to clearly label transactions with merchant names and locations.
If financial technology (fintech) is all about providing financial services in the way that people want, banks can learn a lot from the likes of tech giant Apple.
Meanwhile, NatWest is harnessing Apple’s fintech offerings in its business bank, with the role of Apple Pay to one million small to medium-sized enterprises (SMEs). The bank will add it as a payment option for its small business customers with the promise of easy-to-use and secure functionality.
Apple Pay, which was launched in the UK in July 2015, is available on iPhone, Apple Watch, iPad and Mac. Payments can be authenticated using biometrics through Apple’s Face ID and Touch ID.
James Holian, chief operating officer (COO) of commercial and private banking at NatWest, said: “We’re thrilled to be bringing the ease and security that Apple Pay offers to our SME customers.
“NatWest is committed to providing simplicity and flexibility when it comes to how our customers bank with us, and Apple Pay will allow SMEs to make safe, fast business payments with minimal effort, leaving them with more time to get on with doing what they do best – running their business.”
Read more about Apple’s fintech offerings
- Barclays Bank brings Apple Pay to its customers nine months after its main competitors, with the announcement of its support of the app.
- Apple has announced a fintech service which will enable customers to turn their mobile phone into a credit card.
- New digital payments options are opening up for Danish, Finnish and Swedish iOS users as Apple’s mobile payment service launches in the region.