Apple Card is off to smashing start, according to Goldman Sachs CEO David Solomon.
During an earnings call this morning, Solomon updated investors on the status of Apple Card which launched in the US in August. Despite some skeptics worrying about Apple Card’s profitability, Solomon claims Apple Card is “the most successful credit-card launch ever.”
Apple Card was created in partnership with Goldman Sachs as Apple needed a bank to provide the financing to users. Goldman Sachs has already poured over $275 million into Apple Card and other consumer-oriented initiatives this year.
“In three short years, we have raised $55 billion in deposits on the Marcus platform, generated $5 billion in loans, and built a new credit-card platform and launched Apple Card,” Solomon told investors. “Since August, we’ve been pleased to see a high level of consumer demand for the product. From an operational and risk perspective, we’ve handled the inflows smoothly and without comprising our credit underwriting standards.”
Apple Card offers 3 percent cash back on Apple purchases and 2 percent cashback on any other purchases bought with the card. There are no fees for annual use, late payments or international payments. Apple designed it be consumer-friendly and help users stay on top of their finances making it all the more appealing to iPhone users.
For now, Apple Card is only available in the US. Goldman Sachs and Tim Cook have both expressed serious interest in taking the card international though so we might see it roll out to more countries next year.