Analyst: Apple/Goldman Sachs credit card plan would be ‘interesting, not groundbreaking’

Apple and Goldman Sachs Group plan to start issuing this spring a joint credit card paired with new iPhone features that will help users manage their money, according to The Wall Street Journal. Ted Rossman, an industry analyst at CreditCards.com, thinks it will be “interesting, but not groundbreaking.”

“"My initial take is that it's definitely interesting. I'll want to see if there's a sign-up bonus, an annual fee and a balance transfer offer. And some more definition around 'cash back of about 2% on most purchases,” he says.

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Speculation seems to be 2% across the board and better rewards on Apple purchases. If that's the case, and if there's not a substantial sign-up bonus, it's basically a close competitor to the Citi Double Cash, Rossman says, describing it as “not groundbreaking but an interesting offer from Apple and Goldman, two companies with strong brand recognition."

"They will likely position this as a good fit for cash back lovers who spend a lot with Apple. That may be the main differentiator from the Double Cash,” Rossman says.”Details remain to be seen, but if (let's say) it offers 3% back at Apple and 2% elsewhere, the incremental gain over the Double Cash would be just $14.49 even if you paid retail for the highest end iPhone ($1,449)."

Apple has had success with fitness trackers, another crowded space, and may apply many of the same lessons here with budgeting and debt reduction tools, he adds.

“I'm not sure consumers would sign up for a credit card just for the kinds of budgeting tools they can get for free from Mint and others, but Apple does have a lot of loyal followers."