apple pay card transaction

Apple is partnering with one of Wall Street’s titans – Goldman Sachs – to launch a new product that consists of a high-yield savings accounts for Apple Card holders, the company announced yesterday.

Users will be able to deposit their “Daily Cash”, which are cashback rewards offered by Apple to its cardholders, in a separate account that could generate attractive annual percentage yields (APY). The company did not provide details on the interest rate that the product will be offering.

Among the benefits of the new product, Apple (AAPL) highlighted that the savings account will require no minimum deposit to be opened and a minimum balance won’t be required either.

Transfers from and to the account will also be available and users will be able to keep track of their daily balance and transactions by using their current Apple Wallet.

“Savings delivers even more value to users’ favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives”, commented Jennifer Bailey, vice-president of Apple Pay and Apple Wallet.

Apple Pay’s Large Footprint Paves the Way for a Success Product Launch

Currently, Apple Card users get up to 3% in cashback rewards when they complete purchases with a long list of vendors including Uber, Exxon-Mobil, and Nike while they are also entitled to a 2% reward for making purchases at non-affiliated merchants.

According to data from Statista, Apple Pay has over 500 million users across the world. The savings product, however, will only be available to cardholders in the United States. Certain sources estimate that Apple Pay processes around $6 trillion in payments per year – a figure that indicates that the solution has surpassed the annual transaction volumes processed by Mastercard.

Apple’s decision not to disclose the account’s APY obeys some degree of prudence as the macroeconomic environment is particularly volatile these days, with interest rates going up in multiple latitudes including the United States.

The company’s new banking product will directly compete with the cash-management solutions that many financial technology companies are offering right now. Apple’s strong presence in the payments market could give it an edge and could shift the balance of power in this particular industry.

Also read: The Best VPN for The USA in 2022

According to data compiled by Bankrate, the interest rates offered by similar products from companies like Discover and SoFi Technologies currently range from 2.5% to 3.1% annually. Goldman Sachs currently offers this type of account as well. The product is called “Marcus” and offers an APY of 2.15%.

Apple did not provide a timeline in regards to when the account will be available but they hinted that it could be in the next couple of months when approached by multiple media outlets to reveal further details.

Tim Cook Keeps Exploring New Revenue Streams to Ignite Growth

From autonomous electric-powered vehicles to TVs, Apple is exploring every possible avenue and researching many new technologies and potential products to release as the firm needs to find a way to keep growing its top line.

The iPhone maker is also struggling to keep up with the world’s demand for its devices as commodity prices have skyrocketed this year while COVID outbreaks in China have threatened to disrupt the company’s manufacturing activities.

Companies that offer products such as this high-yield savings account are typically compensated by the sponsor bank based on the amount of deposits they manage to attract.

In the case of Apple, there is a captive audience – the huge number of users that have signed up for Apple Pay and Apple Wallet. They can easily tap into this large audience and the fact that the money can be automatically deposited into the savings account makes things even easier.

Other Related Articles:

Tamadoge - The Play to Earn Dogecoin

Our Rating

  • '10x - 50x Potential' - CNBC Report
  • Deflationary, Low Supply - 2 Billion
  • Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
  • Move to Earn, Metaverse Integration on Roadmap
  • NFT Doge Pets - Potential for Mass Adoption