Apple’s rumored credit card with Goldman Sachs may be attention-grabbing news, but it may not have a huge impact on the company’s bottom line.
In a note to investors, analysts at Bernstein write that the launch of an Apple-branded business card would be “likely immaterial.”
The Bernstein analysts’ appraisal of the card is based on the success of Apple Pay, Apple’s other venture into the payments world. Apple Pay has been heavily publicized by Apple. However, it only amounts to “a few hundred million dollars” per year for Apple. That may sound a lot, but it’s a tiny fraction of Apple’s revenue, which measures in the hundreds of billions.
According to the research note, an Apple business card would not be likely to have too much uptake from customers. “It is unclear that a value proposition centered on integration to the Apple eco-system is really enough to drive significant adoption,” Bernstein analyst Harshita Rawat wrote.
Coming soon to a pocket near you?
The rumor of an Apple and Goldman Sachs credit card was rumored by the Wall Street Journal last week. The card’s big selling point would reportedly be its iOS Wallet app integration. This would offer enhanced functionality for tracking spending and rewards. It may also offer savings for people who buy lots of Apple products.
A credit card collaboration between Apple and Goldman Sachs was first rumored back in May 2018. Apple is reportedly planning to test the card with employees during the next couple of months. It may launch as soon as this spring.