Dive Brief:
- Apple has phased out a rewards-program deal with Barclays ahead of this month’s debut of a new credit card offer with Goldman Sachs. The Barclaycard Visa had offered $50 worth of iTunes or Apple Store gift cards to new customers, and three points per dollar spent on Apple products. Card users also could convert 2,500 points into $25 in credit on Apple purchases.
- The Goldman-backed card "lives on your phone," Apple said. It's being offered through Apple's Wallet app. But iPad users can expect a companion app, Apple said. The card will offer 3% cash back on Apple purchases and smaller percentages on non-Apple purchases.
- An interface on the app will break purchases down into categories based on venue to better identify spending behaviors.
Dive Insight:
Partnerships between banks and retailers have helped lenders branch out in the market to capture more of a customer's borrowing.
Barclays is seeking to expand its U.S. card portfolio by 10% a year, compared with the 6% growth it achieved in the second quarter, executives said this week, according to Bloomberg. The bank recently renewed its partnership with Wyndham hotels, and maintains card partnerships with Uber and JetBlue.
References to Barclaycard rewards have been removed from Apple's website. Now, Apple is only promoting a standard Barclaycard Financing Visa. It's not clear if this will also be wound down.
Apple-Goldman cardholders can carry a revolving balance and will be offered financing plans for certain purchases — although the offer terms did not specify which purchases would apply.
